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The 404: Bitcoin for dummies

About Video Transcript

The 404: Bitcoin for dummies

2:43 /

Jill Schlesinger carefully explains Bitcoin to The 404 guys so that their brains do not explode.

-So here's a deal with Bitcoin, and the US [unk]-- -'Cause Bitcoin's been around for a very long time. -Since 2009. -That's a long time. -That so funny that you say it's very long. Okay, better get-- -Well, in internet time, that's like a decade. -True. It's a virtual currency. -Right. -So it has a very anonymous, interesting development-- -Right. -that in 2009 this comes out, kind of, as asleep [unk] for couple of years, that no one's really thinking. What, the financial crisis, right? And it comes as a result of this idea that, what is currency worth? And Bitcoin kind of came around because people were freaking out, and they're saying that, "well, you don't know what anything's worth it before, right?"-- -Right. -then the market was tumbling and everything was nuts. So flash forward to, about 2011, and it went from, say a few cents of per Bitcoin to like a dollar of Bitcoin to $2-- -Right. -'till like $13 per Bitcoin in the beginning of the year. At which point, things trying to get kind of interesting because people are starting to pay attention. And now all of a sudden, we saw Bitcoin go from, say, 13, 14, $15 up to the 40s. -Yeah. -Then right when Cyprus was basically going into bank accounts and saying, "okay, you've got money here, we're gonna take money out of your account to pay for our bail out?" Bitcoin went to 266 bucks. -Uh huh. -Now it's back in the 40s and the 50s, and people are really starting to say, well, maybe this idea of an electronic currency has-- -That's constantly changing, you know. -that's constantly changing, has some merit. Now, here's the downside, it's not regulated. -Right. -And, you know, that's kind of crazy, now-- -It could be messed with a little bit, right? -Totally, can be messed with, could be manipulated, could be speculative, and from the-- from the federal reserve's point of view, and which I think, they're gonna start to get in on this as they say, it also can be used to launder money. -The concept of Bitcoin is one of these-- it's like flirting with quantum physics. -Yeah. -You know, it's like this intangible sort of abstract idea, some people really get it, some people don't. -I think that it was really created because people were saying, "why is it that we arbitrarily, say a dollar is worth a dollar?"-- -Right. -Right? I mean so, this is like a very existential-- -Sure. -financial conversation-- -Yeah. -and it's fascinating because, it is true that the only reason a dollar is worth a dollar is 'cause we all agree-- -Right. -that that's the case. But when you look at Bitcoin, I think that there're' people who were, you know what-- you know, honestly they're programmers, they're super smart people, right? They're saying, "well why is it that the dollar is worth a dollar?"

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