It is the failure of the Euro, threatening to bring down the continent and the rest of the world. How did it happen? What’s happening? Failing currencies? Collapsing banks. Whole countries on the edge of bankruptcy? – The upside versus the downside in Greece is pretty attractive.
– A stressed investor who truly understands great value. But the investors fill their pockets anyway. Have we lost control of the economy? My names Amund. I’ve always been fascinated by economics.
How it affects society; How it affects you and me. Is there an invisible hand pulling the strings? Or is it self-governing, based on principles we neither understand nor control? How can we regain control? That’s what I’ve been wondering about. That was how I discovered Bitcoin.
Bitcoin is a decentralised payment system. The first specially-made internet currency. 100s of 1000s of computers around the world work equally in a network to create, move and record the ownership of the digital units known as Bitcoins. Bitcoins are programmable digital cash.
You can send however much you want to whoever you want, wherever you want almost free of charge and completely anonymously. Do we really need a new currency? A revolution? Fine! But is it good or bad? Since 2009, the value of the bitcoin has varied by several million per cent. The currency has been linked with criminal networks and shady business.
Neither the Norwegian authorities nor others welcome the revolution. Despite the warnings, bitcoin has gone from obscure programme to billion industry. Many people have embraced technology. what makes it so attractive? Ive had one bitcoin and it does work.
Satoshi Nakamoto… Its a name I’m going to hear many times. That’s when I decided. I had to see how bitcoin actually works. My itinerary ready. My digital wallet full. I’m off! Is Scandinavia ready for Bitcoin? Day one. Forget Bitcoin. Cash is King. Did whats need for garages and other shops to accept Bitcoin? Could the answer lie in an office block outside Copenhagen? – What is Coinify? – Its a means of payment for companies wanting to take Bitcoin. We have all sorts: Food, clothes, internet services, electro etc.
Were the bridge between the old financial world and Bitcoin. – A customer wants to buy something from a shop with Bitcoin. Bitcoin goes via Coinify who returns it to the shop in Euros or Kroner. There are a number of advantages. The shop keeps accounts, as usual, they pay no fees to accept payments from Bitcoin there are no chargeback frauds as with credit cards and its a one-click payment, so it’s easy. – Do you feel that Coinify is supported by the Danish authorities? – Three years ago, laws about Bitcoin were uncertain in Denmark and Europe.
Now it’s better. We know the legal position for Bitcoin in most areas. It can still get better, but it is pretty good. – The Danish authorities are positive. What about the rest of Scandinavia? – Finland yes, Sweden iffy, Norway no. – What makes it so difficult to regulate Bitcoin? The question brought me here.
The Copenhagen docklands. Can Bitcoin and the financial world live in harmony together? Will Scandinavian countries give Bitcoin and digital currencies a chance? I think I’m ready for a beer! – What do you think will be the future of Bitcoin? – Maybe I should talk a bit about the past?
When Bitcoin came out in 2008-9, it seemed crazy. I was interested because the core of Bitcoin is a code which I wanted to try to break. Many have tried but none succeeded. So Bitcoin could be here to stay. – What about Bitcoin and society? Is it good news or bad news? – You can control all your money; You don’t need a 3rd party or bank. – The only way to get out of the boot of government is to build a system a currency that works completely outside centralised control.
And that is what we have today. Its dissemination of power. A paradigm shift. Gothenburg. Home to Volvo, Ullevi, Liseberg. And Bitcoin pioneers. The usual suspects. The traffic dept. still has some way to go. How many have taken the leap? How big is Bitcoin really? Currently, there are about 100,000 Bitcoin transactions per day. In comparison, Visa alone has 4,000 transactions per second.
Can Bitcoin challenge the bank’s monopoly? Will the system work on a large scale? Then there must be more places like Webhallen: The first big chain store to take Bitcoin. Every day 200,000 Bitcoins change hands. Only 2.5% is used in shops. That’s around 1.2 million US dollars. A drop in the ocean against USD 60 billion in retail trade every day. You have to start somewhere. The blockchain. A system for transactions with no central authority. Buying and selling, work contracts, voting slips everything can be stored here.
With no bureaucracy or state control. That’ll be a challenge to society. Maybe on a deeper level than we might suppose. A Ugandan Bitcoin trader explains why East Africa is ready for Bitcoin. – We don’t have PayPal or credit cards like other countries. We use mobile phone transfers. It is a little bit like Bitcoin. In the future, all of us will use Bitcoin. – Its about democracy. Can Bitcoin democratise society? Many people think so. The Swedish Bitcoin Party for example.
Were to meet outside the Riksdag. Freedom is built into the blockchain where all Bitcoin transactions are recorded. Single transactions are collected in blocks which the network registers every 10 mins. The blocks form a chain all the way back to the first signed by Nakamoto in 2009. There’s something religious about it. Maybe that’s why I’m here in Sollentuna, outside Stockholm. Looking for… – Robert! – Hi! A democratising technology; a shared value system; a peoples currency.
Bitcoin must be good, mustn’t it? But banking and finance are resisting. Are they scared of losing control? Or are they seeing something I’m not? Boden, Nordbotten. 80km south of the Arctic Circle.
Is it here I will find the answers? I’m going into an old helicopter hangar. And I think I know what’s hiding there. It’s here I’m hoping to find the heart of Bitcoin.
– Welcome to KNC Clear Sky Farm. Physically I can’t get any closer to Bitcoin. In this hall alone, there are 43,000 specialised computers. It’s here the value of Bitcoin lies. This is where the blockchain is created. What is the motivation? – Who is behind it? – You better talk to Sam. – What is Bitcoin mining? – Bitcoin mining is transaction processing. – If someone wants to send a Bitcoin from A to B it must be guaranteed.
We don’t want person A to be able to use the same Bitcoin twice. So you must be able to trust the network which guarantees the money is real that the Bitcoin won’t be sent elsewhere and the transaction will be confirmed.
The miners create blocks of transactions and have a mathematical problem to solve. When they solve the problem, they announce to the network: I have solved it and included all these transactions in my block. So Bitcoin mining is really transaction confirmation. – How are new Bitcoins put into circulation? – As soon as you have created a new block full of transactions, you get 25 new Bitcoins.
And you get to decide where they go. We send then to ourselves first, then to our customers. – So that is the motivation for creating this centre? – Imagine 3,600 new coins per day; the more computer power you have, the more you get.
If you only have one computer you don’t stand a chance. So you have this hypergrowth of this Bitcoin network. – How secure is the network? – The more computer power in the chain, the more secure the chain is.
If you want to take a transaction out, you would need 4 billion laptops and you would have approximately 10 minutes to do it. – How many laptops do you have in your facility? – Laptops don’t work for us. We have very specialised chips. The technology we use is cutting edge. It is beyond mobile phones. It is the bleeding edge of the semiconductor industry. Bitcoin is the worlds most secure network.
Nobody has greater computer power than us. The worlds most secure network? Can that be correct? So Bitcoin is safer than the bank. In terms of computer power, it’s the worlds fastest growing payment network. How come such cutting edge technology has wound up in the Swedish countryside? Is that to be the conclusion from this experiment? 2,500 km for a cake and a Sorry, no? No! Maybe Scandinavias not ready for Bitcoin.
It’s not easy to hand power and control to technology from an unknown source. But one thing is for sure: We have got a technology that will revolutionise how we act together. It is up to us to use it.
To democratise the economy and thus create a better society. That way we can all be Satoshi Nakamoto. That way we can all be Satoshi Nakamoto.
Read More: LITECOIN CREATOR CHARLIE LEE REVEALS