hi everyone this is Charles hoskinson broadcasting live from warm sunny Colorado always warm Always Sunny sometimes Colorado today is May 29th 2021. you know and it's uh the weekend it's a Saturday uh next week I'm headed out to I think the largest Bitcoin conference in the United States I they wanted to go retro and old school so I shall be going there representing the Bitcoin education project something I haven't really thought about almost a decade but you know there's going to be a lot of old school people there and whenever you look at the past it gives you some chance to have some reflection and think about where we've been and where we're going and as many of you noticed we're starting to enter a little bit of a market downtrend and of course that is the principal dialogue that people like focusing on you know I for a long time have mostly ignored the markets because the markets are macro and they're very frustrating as an entrepreneur they're very frustrating as a project leader who executes and builds things you know I had a lot of friends in the real estate business and I remember in 2007 and early 2008 life was great and they were exceptionally good businessmen they have great customer service making wonderful deals uh they had good customers wonderful HR uh very strong relationships with everybody always honor their commitments always showed up on time five minutes early ten minutes early 2008 came a lot of them got wiped out because the macro moved against them and for a long time our industry has been this way uh you know 2017 2018 and before if Bitcoin goes up everybody goes up if Bitcoin goes down everybody goes down it's depressing as hell it doesn't matter what technology you have what you've accomplished the deals you've done the announcements whatever it might be there could be some counter cyclic play but for the most part these markets are driven in that direction in 2020 2021 have been very interesting in that this is really the first time where we've noticed significant counter cyclic movement where both Bitcoin dominance has fallen tremendously it's gone down to 43 the last time I checked and that's basically the percentage of all the totality of market cap that Bitcoin owns relative to everything else and we've also seen that institutional preferences have not been unilaterally Bitcoin and then everything else actually people are starting to differentiate uh proof of stake from proof of work and we're starting to see separation of things and in that it actually is a pretty amazing thing I you know we're gonna get it done as an industry L Grand F2 cardano with World War it's Omega you know we're all neck and neck for building these amazing engines that are going to process billions of transactions every year if not more uh containing collectively trillions of dollars of value or future proofing programmable finance and this financial operating system is going to be social and it's going to be institutional and it's going to be Fortune 500 and it's going to run nation states at some point it's inevitable this is the reality because where are we coming from we're coming from a siled world we're coming from a controlled top-down World we're coming from a fragmented World we're coming from a world that's incredibly exclusive where certain people a small group of people get to decide everything and nothing is working negative interest rates you borrow 10 you get nine back it's it's nuts uh hyperinflation massive deficit spending uh banks that are completely unaccountable Financial systems that are super fragile and too big to fail tons of corruption tens tons of nepotism uh double speak everywhere you look and policy makers who have the audacity to say that a full Reserve Bank is less stable than a fractional Reserve Bank it's it's like it's like somebody telling you cancer is good for you uh it's just craziness so there's an inevitability to our industry as a whole and there's a maturing of our industry as a whole and on the peripheries we have a mass influx of people who some came to get rich quick some came out of frustration and anger some came because they honestly believe this is the next big thing and they can be old and they can be new you can be the Ray dalios and the Carl icons or you can be the 19 year old kid works at fast food and he's using the cash app to buy something uh it doesn't matter people are opting out of the Legacy Financial system and they're recognizing it for what it is it's a negative to the human race it's no longer a positive and we're building something better and these markets are reflections of that and the diversity in the markets and the distributions in the markets and the Vibrance of them the volatility of them is a representation of that over the next 10 years there's going to be more advancement in monetary policy from our industry than the last hundred years of central banks in the next 10 years there's going to be more advancement on financial engineering the construction of financial products and the marketplaces upon which trade them than the last 100 years from Wall Street and England and Tokyo and all the other places in the world combined in the next 10 years there's going to be more movement of wealth 24 hours a day seven days a week on crypto rails than there will be through the bis and through the fixed protocols and all these other things that are the Mainstay Staples of the financial world the next 10 years there's going to be more Automation and Innovation and open law and automated law and regulation in our industry the last hundred years of transnational agreements that have occurred in the next 10 years the next two billion people who enter the world financial system the vast majority of those people will be brought into our system from the cryptocurrencies phase that's where we're at that's what our industry is about this is why there are so many incredible people who are in this industry working incredibly hard every single day and unlike the past Cycles in 2017 and 18 compared to today where we're at we're now in a situation where we've decoupled from Bitcoin and people are starting to realize that while that was a great experiment it's not the end-all be-all and that there's more to the story and unlike the past the macro is starting to actually move in our favor instead of just being this weird cyclic thing we will move Beyond an industry that is deathly afraid of a 60 billion dollar stable coin being solvent or not we're going to move Beyond an industry that's definitely afraid of a hash rate falling because a single nation state makes a stupid decision to ban mining or not we're going to move beyond that and we're going to recognize that this industry is about systems at its core this industry is about redesigning the way the money in your pocket works and redesigning the way you express yourself and relate to others the social Finance so the Sofi side the expression side the communication side the Privacy side of things and how you choose to live your economic life it's about giving you back your economic identity my great Passion has been Africa in the developing world because I think this is where we can highlight the use cases better than anywhere else in the nation states are open Partners wanting these things reaching out and saying let's get it done but by no means this is exclusively the provenance of the developing world the reality is each and every one of us is entitled to and deserves economic identity and it's being taken from us it's being taken by overdraft fees and bank accounts that arbitrarily decide what businesses you're allowed to be in and not it's being taken from us by politicians who decide that they're smarter than you and therefore they can decide what you're allowed to own and what not and how to live your economic life it's being decided by your employer it's being decided by bureaucrats and transnational agreements it's being decided arbitrarily by marketplaces we don't have control over and are never invited to the table to have control over that's the world we inherited we were born into but this industry is about making sure that the world we die in and our children inherit is very different the one where we're in charge not them and what's the value of that well what's the point of value when the very definition of value is up four grabs this is the life's work and this is why we have so many great entrepreneurs we do what we do and this is why there's so much passion tribalism excitement volatility and other such things in our industry but look at where we are at the progress we have made we've brought to bear as an industry some of the most sophisticated mathematics and computer science mankind has access to from zero knowledge proofs to trusted Hardware to multi-party computation the homomorphic encryption my God everything that can be said every part of the cryptographic word salad that could be uttered has been uttered no challenge is too great if we have to write a new programming language we'll write a new programming language if we have to develop a new consensus protocol we'll develop new consensus protocol if we have to go to a desert and build a Mining facility we'll build a Mining facility as an industry if we have to launch our own goddamn satellites it shall be done with a smile and that crazy Joy because that's who we are and that's what this is about and that's not about money it's about freedom it's about the belief that we can build a different system for the world that's better than the one we have right now and is more inclusive one where we're all treated equally and fairly one where we have access to opportunity no matter where we're from because people deserve that and we have seen in just such a short period of time 12 short years really honestly very short period of time an evolution from just a few adherents who are crazy to a global movement and the progress is accelerating it's not slowing down the capital is there the actors are there the frustration is there so there is an inevitability about these things and this is the first year where I've seen the markets behave in a way where there's Nuance this is the first year I've seen the markets behave in a way where it wasn't just Bubble Burst Bubble Burst this that crypto winter crypto summer these guys are getting rich these guys aren't getting rich we actually see real things maturing materializing and growing and solidifying and getting the respect and dignity that they require to a point where people are actually getting serious about how to regulate them actually getting serious about how to integrate these things permanently into the society it's no longer a question of when will they go away when will these things die it's now a question of how do we live with them now that they're here just like the same inevitability of the internet as a whole I firmly believe what we're doing with cardano is the best effort the industry has of course I would believe that because I created cardano and I brought the people together to be the first movers and you the movement behind cardano have made it what it is today and in a few short months programmability finally is here and it's going to augment what we've already done with metadata and Native assets and we will see hundreds and eventually thousands and eventually tens of thousands of unique and interesting applications launched and those applications will reach into the geographies that we have invested half a decade into opening up from Ethiopia soon to be Ghana and many other places throughout Africa southeast Asia places like Malaysia and Indonesia and Vietnam and so forth and eventually the rest of the entire world that's in tremendously exciting thing but when we look to the next 12 to 24 months the reality is that all these third generation Protocols are waking up and it's going to fundamentally change everything and we will no longer be stuck into this Bitcoin altcoin Madness and we're no longer going to be stuck into this irrationality and rather we will see the value of our industry be reflected by the tens of millions eventually hundreds of millions eventually billions of people who use these products every single day to do things they couldn't do before whether that be lending or insurance or banking or it be Identity or it be analytics or whatever the hell it happens to be who knows it could be revolutionizing the way telecommunications work it could be changing the way that you grow your crops it could be finding new markets and new customers or representing wealth in ways we never imagined possible the reality is that these people will be doing that on a daily basis from their cell phone from their web browser browser and all kinds of new experiences and thousands of new startups will come as a result to service the needs of these new markets and these new entrepreneurs creating the Googles of the future and the Facebooks of the future and the Amazons of the future but in a much more egalitarian and fair way we're ultimately you are in charge this is it guys the industry is moving in this direction who the hell cares about volatility goes up it goes down but it's here to stay crypto's not going anywhere these markets aren't going anywhere this experiment hasn't failed it's a contagion that has infected the world and it will ultimately change the DNA of the world as a result leaving behind something fundamentally different than when we found it we now live in a place where instantaneously value can move anywhere be stored anywhere transformed into any other type of value we've discovered the financial stem cell we've learned how to engineer it and change it and transform it replicate it grow it in a lab and make it useful anywhere anyplace anytime and we've discovered that everything is programmable and everything can be integrated together the legal Arrangements the identity Arrangements etc etc etc it's all there once mankind knows they have fire you can't go back you can't change that you can't put that Genie back in the bottle central banks will fade away it's just going to happen your conventional Legacy banks are going to fade away the payment rails that are so nepotistic and corrupt and slow and inefficient and expensive will fade away and good riddance it wasn't us who charge 15 to some of the poorest people of the world to move their money home to take care of their parents it was the people who ran the old system it wasn't Us in this industry who charged 85 percent interest to lend a hundred dollars to a subsistence farmer desperately trying to survive after a drought it was the Legacy Financial system it wasn't our industry that laundered hundreds of billions of dollars for drug dealers and evaded sanctions and participated in oil for food and all kinds of these horrible programs that ended up enriching and empowering some of the worst human beings the world has ever known it was a legacy Financial system and never allow them to say that ours is the industry that's the risk ours is the industry that's the antidote to the excesses corruption and nepotism that we found this is an industry of frustration that has now been replaced by an industry of creativity and innovation we're going to change the world it's just that simple we didn't ask permission we came here and we're going to get it done together and there's simply too many people now the markets are simply too large The Innovation is simply too vast it's gonna happen it's no longer a question of if it's when and how will these dinosaurs find a way to survive in this new order I hear a lot about New World Order well guess what there is one and it's us we're changing it all we're making it a better place and I love the fact that I get to do it with a smile in my face and I get to do it by giving everything away every time there's been a major change in human history it's been owned by someone or an Empire or a corporation some big entity it's a winner take all thing or Consortium this is the first time where we're Reinventing all the rules changing everything and the vanguards of it are open source patent free and as defined by the people who use them as the people who invent them and in many case more so by the people who use them than the people who have invented them that's truly a special thing and it's a unique moment in our history which we should never forget and our question from there should be how do we take this to the rest of society medicine education governance they're all up for grabs and the people who hold on to these things will tell you that well those rules don't apply but then I ask if we can change something as ossified and corrupt and nepotistic as nation states printing money and using it for war and for Domination and control and changing it to something for peace and love and for human benefit what else can we change the generations that come after will now have the ability to dream those dreams because of the work we are doing as an industry as a whole each and every one of us even the ones who hate each other we're all on the same boat in that respect so I figured I'd make a video at the this juncture to remind everybody why the hell are we here and to say don't worry about the small stuff the waves go up the waves go down there is Ebbs and flows dogs will always bark but the Caravan will always move on and the direction we're moving to is a better world because of each and every one of you have a wonderful weekend and thank you so much for listening until next time cheers
