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Your Right to Financial Privacy
Episode 6715th August 2022 • Generational Wealth with Cryptocurrency • McIntosh
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It's August the 15th and this is episode 67 of Generational Wealth of Cryptocurrency.

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I'm your host Macintosh.

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Today we're going to talk about a right to financial privacy.

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Hey everyone, no one on this podcast is a financial advisor and all information presented

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on this podcast is for informational purposes only.

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Now that we have the legal stuff out of the way, let's jump on in.

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All right, we've got a lot of news this week and some of it directly relates to the topic

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for this week.

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The big news of the week, and I think it actually happened fairly early, looks like it probably

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happened around the 11th or 12th, is that the main developer for the Tornado Cash app,

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which is a decentralized application, at least in theory, that runs on the Ethereum network,

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creates a smart contract which essentially anonymizes Ethereum transactions, was arrested.

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Not only that, the U.S. Justice Department, if I'm not mistaken, so he was arrested in

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the Netherlands prior to that, the U.S. Justice Department, if I'm not mistaken, basically

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said that it was illegal for people in the United States to use the Tornado app.

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The argument is that it is being used to anonymize transactions and that people are using it

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for illicit gains or whatever, for laundering their money.

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This is an old argument, it's been around a long time.

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Of course, the Bitcoin community itself has certainly heard their fair share of this.

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Bitcoin is used for illicit purposes and so on and so forth, even though certainly at

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this point very little of the Bitcoin transactions are actually of an illegal nature.

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Ironically, of course, Bitcoin, even though it is censorship-resistant and this kind of

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thing, it's really not a privacy-based network.

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All the transactions can be traced and honestly, it's fairly easy in a lot of cases for them

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to run down illegal things, so we'll be discussing that in general.

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I will be including in the show notes a link to this gentleman's arrest.

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In addition, and I don't know if this is directly related, I believe that it is, I do not know

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who this individual is, but I did on Twitter, it is actually related directly, I apologize,

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but a gentleman named Roman Siminov, his GitHub account was suspended, so he's a developer

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as well on Tornado.

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So let's see, oh yes, and also directly in regards to this, you may not know who this

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person is, he's actually fairly famous.

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I had not heard of him before the Shark Tank, but he's one of the hosts of the Shark Tank.

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His name is Kevin O'Leary.

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He's been involved in crypto for a while and he goes by the nickname of Mr. Wonderful,

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which I've always wondered about, it's kind of weird, but whatever.

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He came out and I'll have a link to this article, he says, yeah, that's okay, it's worth it

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for institutional adoption, so I'll have a link to the show notes to that.

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We'll probably be discussing that a little bit more in the main segment as well.

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The merge date for Ethereum, speaking of, has basically been set, it is still possible

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that they could move it at the last minute, but there's no indication that that will happen.

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It will be September the 15th or 16th, probably depending on what time zone you're in, and

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of course we've talked about this a number of times, that will be merging the current

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proof of work chain and the proof of stake chain together and essentially eliminating

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proof of work.

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And there's a number of reasons for that, I'm not going to rehash that in this episode.

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I do believe, honestly, it will be a good thing for Ethereum, and I'm talking strictly

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in terms of price.

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There's people who think it's what they would call a buy the rumors, sell the news, or whatever

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the saying is.

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But anyways, they think that after the merge happens that it will actually dump.

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I don't think that's going to happen, because the reasoning in their case is people have

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money that are tied up in staking and maybe they've had that for some time and now they

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can after this, a short period of time after this, they'll be able to get it out.

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And so suddenly it's going to release all this Ethereum.

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I'm sure there'll be some of that.

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I don't think it's actually going to do that much.

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Of course, moving to this proof of stake network setup will really enable a deflationary aspect

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of Ethereum that we've not seen very much so far.

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One of the improvements that they did to the blockchain, they enabled the burning of some

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of the tokens, a fraction of the tokens that are used in the transactions.

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And that has been limiting the number of Ethereum that were created.

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When they moved to the proof of work, excuse me, to the proof of stake platform, of course

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that completely eliminates minting, mining, whatever you want to call it, of new coins.

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And with the burning of transactions, it will every day be deflationary.

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So the amount of Ethereum that exists will go down over time.

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You could almost look at this as kind of a step beyond what Bitcoin does, where there's

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going to be a total of 21 million Bitcoin ever mined and that will be the end of it.

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But they're not going to burn Bitcoin, so to speak, to run transactions.

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There will always be 21 million Bitcoin.

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I think, if I remember correctly, Ethereum in total has about 110 to maybe 120 million

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tokens, somewhere in that, maybe 110, 113, something like that.

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But it has essentially reached its peak.

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It certainly will when this transition takes place, and then it'll start going down.

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So that's why it's deflationary.

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It's coming up September the 15th or 16th, I haven't looked to see what day that actually

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is.

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Let me check real quick.

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That's on a Thursday or Friday, depending, I'd probably be on my Thursday.

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I'd kind of like to do a special episode maybe, I don't know, we'll see, we'll see.

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All right, so we got that, oh, and in some other very large news, I'm sure Mr. O'Leary

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would love this since he wants institutional adoption, which I don't necessarily have a

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problem with, mind you, but well, we'll get into that later maybe.

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BlackRock, and I'm going to provide this as a news item.

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I'm not going to give any commentary on BlackRock at this point.

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I'm not sure I've ever talked about them.

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I probably have in passing, but they are the world's largest asset manager, over 10 trillion,

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excuse me, dollars in assets under management, and they're going to start offering Bitcoin

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services to their customers, which of course, they're going to be high net worth individuals,

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probably companies.

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I don't know how all that works with them, but it's a pretty big thing, actually, that

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they would do this.

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So in terms of a bullish momentum for Bitcoin, I certainly think this would be something

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that would be helpful.

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I will leave my opinions about BlackRock off the table.

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You can do your own research on that if you would like, or listen to some other podcasts.

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Maybe people talk about BlackRock.

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But the fact that they're selling Bitcoin, certainly selling, trading, whatever, putting

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it, it's actually putting it into a spot ETF, technically, but giving their customers access

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to it is only going to be a good thing.

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All right.

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So that's the news quite a bit.

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Time to jump into the show.

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So a few days ago, of course, this happened, and I was thinking about it.

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I didn't know a whole lot about tornado cash beforehand.

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On the surface of it, it didn't seem to be a very good thing, but I took a few days to

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evaluate it.

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And imagine this, I've actually got some thoughts on it.

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So I think this is actually very important, and I don't care if it happens on Ethereum

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or Bitcoin.

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See, this is an Ethereum thing, so the Bitcoin people, certainly the Bitcoin maximalists

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are kind of ignoring it.

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But I think this is something that can affect the entire cryptocurrency ecosystem, and in

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my opinion, probably set a very bad precedent.

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So let's set the table.

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Let's get some things laid out.

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First of all, is tornado cash ever used for illegal or illicit purposes?

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Are people laundering money through tornado cash?

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Absolutely.

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Lots of things are used for illegal purposes.

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I've mentioned before, I live in the southeast of the United States.

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I happen to live right off of one of the major interstates, not too far.

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And that interstate, from what I understand, transports more drugs than any other place

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in the United States.

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Or maybe it's illegal aliens, I don't know, to be honest, but it's one or the other.

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And is that a bad thing?

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Yes, of course it is.

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Does that make the interstate, that specific interstate or any interstate in the United

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States, a bad thing?

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No.

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It's funny, I was actually reading something completely unrelated, but in the early 1900s,

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somewhere around 1920, I think, maybe shortly after World War I, Dwight Eisenhower, I wonder

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if I can find this real quick, but he was doing some work, maybe for the Army Corps.

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I wished I would have saved this, but I had no idea I was going to talk about this.

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It does relate.

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But the Army Corps of Engineers, maybe, I don't know, I could look this up if I really

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need to.

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Anyways, they were doing some work and they were going from one point in the United States

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out in the West, it was like from Cheyenne to, I don't know, another spot.

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I do not remember the cities involved, but it was 70 miles apart or something like that.

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And it took them three days to travel that distance, which is insane these days.

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Now, there's an interstate between those two places now, and it literally takes less than

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an hour to make that trip.

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But back in 1920, it was a three-day journey.

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So you see that this interstate system, obviously, that we built in the 1950s, if I'm not mistaken,

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was a very helpful thing.

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Again, I go back to the question, can it be used for bad purposes?

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Of course it can.

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Is tornado cash created specifically for people to launder money?

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I have no idea.

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I do not know.

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I do know that a lot of people used it for very legitimate reasons.

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I'll give you an example, if you remember, and she probably didn't use tornado cash,

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but as an example, if you remember, I discussed shortly before the episodes that I did on

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West Africa with the CFA currency.

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There was a woman, and man, I don't even remember what country she was from, to be honest, at

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this point, but she was being persecuted essentially by her country because she and actually her

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father before her, they were fighting for, and not in terms of violence, but they were

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fighting for fair elections.

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There's essentially a dictator running that country, somebody who was put into office.

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Well, if I remember correctly, his father was put into office by the French, and then

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he was put into office when his father died.

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In my book, that's a dictator, but I don't know, color me just crazy like that.

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And so she's fighting for a form of freedom in her country, and something like this could

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be very useful for her because these systems are not, they're not completely perfect.

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They do not offer privacy, and we'll talk about privacy in just a second.

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It's very foundational to all of this.

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So there's certainly a legitimate use, and I'm not going to go through every use case,

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but I'm sure this device was not created strictly to be used for illegal means.

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Well a couple of things.

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First of all, like what was going on with GitHub, just taking down code to me is nonsensical.

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I have to come at this from a framework of someone in the United States.

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There's been Supreme Court cases, our highest court in the country, that have basically

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said in a nutshell that code is speech.

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What does that mean?

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When I write code, and I do write code, not about cryptocurrency, but when I write code,

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it's the equivalent of speech, and I have the therefore the free speech ramifications

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of that.

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In the United States, we have a right to what we call free speech, meaning that within parameters,

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we can say whatever we want, and you may not agree with that, and that's okay.

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You don't get thrown in jail for that.

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Now I turn this into another rant.

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Sometimes that seems like that's not becoming the case, but I'll leave that alone.

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Code falls under the same category, so keep that in mind, and did GitHub, a private company,

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have the right, quote, right, to throw Roman Semenov to ban him from their platform?

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Yeah, I guess you could say they did, but again, it's setting a bad precedent.

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Now in my view, let's specifically talk about what happened here with the United States.

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Remember this was all triggered because the US government said it's illegal for US citizens

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to use tornado cash.

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So what they are doing is they are presuming that by using tornado cash that you are doing

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something illegal, that you're doing something nefarious, whatever you want to call it.

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And again, I go back to my simple example of the woman in the West African country who

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needed all the anonymity that she could get.

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That's just a simple example right off the top of my head.

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There are many legitimate reasons to use a service like this.

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A lot of times when you're having discussions about this stuff, people will say, well, if

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you're not doing anything wrong, why do you care?

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Now you may or may not believe this, but I would certainly say I don't ever intentionally

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do anything wrong in regards to my taxes or things like that.

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I'm not trying to skirt anything.

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Now I would also say if you've ever tried to read the IRS tax code, it's a nightmare

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and basically anyone is incapable of actually truly being correct about it.

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So we'll leave that alone for now.

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But where does all this come from?

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Again, a framing coming from the United States, we have what's called a constitution.

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This was a document that was written very early in our history that outlined some of

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the basic rights of people and some of the responsibilities of the government.

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Shortly after that, they started making amendments, amendments being kind of updates to the constitution.

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The first 10 of those are called the Bill of Rights.

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And the one that I want to talk about specifically is the Fourth Amendment.

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So as I was doing my research for this, I pulled up the text of the Fourth Amendment.

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And I'm not, well, actually I am going to read it, it's right here.

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It's very short and then we're going to discuss it.

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Amendment four, the right of the people to be secure in their persons, houses, papers

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and effects against unreasonable search and seizure shall not be violated and no warrant

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shall issue but upon probable cause, supported by oath or affirmation and particularly describing

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the place to be searched and the persons or things to be seized.

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All right, yeah, that was written in the 1700s.

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We don't really talk that way anymore, but what does it mean?

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It means that if there's not probable cause, if we don't have reason to believe that you're

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doing something wrong, got to stay out of your stuff, okay?

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That's what it means in essence, my version.

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It protects against things like arbitrary arrest.

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You can't just go out and round up a bunch of people.

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Now we can make an argument this kind of stuff happens, but this is what it was intended

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for.

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That's of course the basis for laws regarding search warrants for what's called stop and

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frisk where you just stop people and shake them down, so to speak, because I don't know,

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they look funny.

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Maybe they look like they're doing something wrong.

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Safety inspections, wiretaps and other forms of surveillance.

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Now in the 1700s, they didn't have wiretaps, they didn't have the internet, they didn't

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have all of this stuff.

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So when we look at the Constitution and the Bill of Rights, we have to understand of course

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this was written a long time ago.

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How do we translate that into modern times?

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Now I'm of the opinion that it should be translated, it doesn't literally mean, well, we can only

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talk about our houses and our papers and our effects, so maybe what's in my home.

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What's the meaning of that?

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If it's my private property, the government has no business being in it if they have no

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probable cause.

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That's what that means.

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Now I would argue that would go so far as let's say I'm using a cell phone, which is

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my private property, and I'm texting someone or calling them.

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The government has no right to listen to that conversation, record that conversation, have

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logs of my text messages without probable cause.

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And over the last 20 years, or maybe a bit more, it's become far too easy for that kind

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of thing to happen, and most people don't even understand this.

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The government can basically gather anything that they want electronically without real

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justification, and then it becomes a data harvesting exercise, and then they just kind

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of go through there and they look for things and then run with that, and it becomes far

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too easy to gather up people who are not doing anything wrong.

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Now first of all, to me, this explicitly says you can't do that, but that's the reason why.

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We don't just presume someone is guilty.

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You're supposed to presume they're innocent until they're proven guilty, and just because

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somebody dresses a certain way or looks a certain way or goes to a certain place doesn't

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mean that they're guilty.

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So just because I go to tornado cash and throw in some Ethereum and it does whatever and

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I get some Ethereum out, it doesn't mean I'm doing anything illegal.

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I'm just using it to protect my privacy in that case.

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So I want to read something that I think is very important.

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I hope my voice holds up for this because in a way, I think this, I might skip part

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of this.

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It's not terribly long, but this was written by a gentleman named Eric Hughes and it was

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actually written in March of 1993 and you need to keep that in mind.

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So this was long before Bitcoin.

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It was around the same time period that people were actually starting to try and invent electronic

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cash, these predecessors to blockchain-based cryptocurrency.

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So people were starting to think deeply about a lot of the ramifications of that.

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So this is called a cypherpunks manifesto.

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So the cypherpunks were the group of people who, they came up with a lot of these ideas.

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So anyways, privacy is necessary for an open society in an electronic age.

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Privacy is not secrecy.

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A private matter is something one doesn't want the whole world to know, but a secret

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matter is something one doesn't want anybody to know.

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Privacy is the power to selectively reveal oneself to the world.

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If two parties have some sort of dealings, then each has a memory of their interactions.

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Each party can speak about their own memory of this.

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How could anyone prevent it?

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One could pass laws against it, but the freedom of speech, even more than privacy, is fundamental

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to an open society.

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We seek not to restrict any speech at all.

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If many parties speak together in the same forum, each can speak to all the others and

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aggregate together knowledge about individuals and other parties.

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The power of electronic communications has enabled such group speak, and it will not

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go away merely because we want it to.

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Since we desire privacy, we must ensure that each party to a transaction have knowledge

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only of that which is directly necessary for the transaction.

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Since any information can be spoken of, we must ensure that we reveal as little as possible.

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In most cases, personal identity is not salient.

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When I purchase a magazine at a store and hand cash to the clerk, there is no need to

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know who I am.

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By the way, sorry, let me break in for just a second.

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If the U.S. government were truly serious about money laundering, they'd stop using

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dollars, because they're used far more for illegal activities, because money, dollar

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bills or $100 bills or whatever, is very easy to keep anonymous.

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Anyways, moving on.

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When I purchase a magazine at a store and hand cash to a clerk, there's no need to know

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who I am.

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When I get my electronic mail provider to send and receive messages, my provider need

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not know to whom I am speaking or what I am saying or what others are saying to me.

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My provider only needs to know how to get the messages there and how much I owe them

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in fees.

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When my identity is revealed by the underlying mechanism of the transaction, I have no privacy.

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I could not selectively reveal myself, I must always reveal myself.

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And this happens with virtually every service that you use on the internet.

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When you start using another service for your mail, such as Gmail, hey everybody, now you're

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giving them your phone number and your name and I don't know, maybe they ask for your

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address.

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I don't think they do.

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But there's information that you're giving them in theory to, I don't know, because they

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use it for other things is why.

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Otherwise, therefore, privacy in an open society requires anonymous transaction systems.

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Until now, cash has been the primary of such systems.

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An anonymous transaction system is not a secret transaction system.

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An anonymous system empowers individuals to reveal their identity when desired and only

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when desired.

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And this is the essence of privacy.

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It's a very important paragraph and you need to think about that.

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Privacy in an open society also requires cryptography.

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Now, I don't know, you guys may not remember, but there have been various attempts over

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the years by the US government to have back doors into cryptography.

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If we're allowed to have private communication, but then the government wants to have access

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to all that communication, how is that private?

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Just something to think about.

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You may remember the clipper chip back in the day, I think that was about circumventing

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cryptography supposedly only by the government and so on and so forth.

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Back to the text.

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Privacy as an open society also requires cryptography.

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If I say something, I want it to be heard only by those for whom I intend it.

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Of course, now we just put everything on Facebook, but anyways.

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If the content of my speech is available to the world, I have no privacy.

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To encrypt it is to indicate the desire for privacy and to encrypt with weak cryptography

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is to indicate not too much desire for privacy.

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It's kind of a weird statement, not really sure what he meant there.

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Over the years, a lot of cryptography has proven to be weak over time, but regardless,

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to me, cryptography indicates this is private.

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Breaking that is showing that, well, you're trying to do something bad to that person.

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Why would you be breaking their cryptography?

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Furthermore, to reveal one's identity with assurance when the default is anonymity requires

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the cryptographic signature.

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I don't want to go down into this rabbit hole, but a cryptographic signature is simply a

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way of proving who you are, even though it doesn't require, I don't know, your driver's license.

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We cannot expect governments, corporations, or other large faceless organizations to grant

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us privacy out of their beneficence.

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Now, the reality is, like I just said in a different way a few minutes ago, we should

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expect the government to respect when we have things cryptographically sealed.

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They should respect that, but they don't.

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I think that's a very important fact to dwell on, even though way back in the Fourth Amendment,

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way back in the 1700s, we were guaranteed the right to privacy in our matters.

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If I want to talk to somebody on the West Coast about whatever, and I want to keep that

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private, for whatever reason, I should be allowed to do that according to the Fourth

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Amendment, and yet routinely that's getting violated.

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I am not even going to start talking about the banks.

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I have something somewhere I came across, I thought I had it in my list, but I can't

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find it, talking about the banks and how much of our information they leak and monitor and

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have access to.

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It is ridiculous.

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Back to the text.

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It is to their advantage to speak of us, and we should expect that they will speak to try

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and prevent their speech, is to fight against the realities of information.

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Information does not just want to be free, it longs to be free.

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Information expands to fill the available storage space.

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Information is rumor's younger, stronger cousin, as a turn of speech.

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Information is fleeter afoot, has more eyes, knows more, and understands less than rumor.

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I'm not exactly sure what Mr. Hughes meant by that, but we'll move on.

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Maybe I just need to think about it some more.

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We must defend our own privacy if we expect to have any, and I think that is a critical component.

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If you just say, oh well, I'm not hiding anything, you're giving up your privacy.

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And there are always times in our lives when we want privacy.

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We must come together and create systems which allow anonymous transactions to take place.

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People have been defending their own privacy for centuries with whispers, darkness, envelopes,

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closed doors, secret handshakes, and couriers.

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The technology of the past did not allow for strong privacy, but electronic technologies

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do.

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We the cypherpunks are dedicated to creating anonymous systems.

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We are defending our privacy with cryptography, with anonymous mail forwarding systems, with

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digital signatures, and with electronic money.

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Cypherpunks write code.

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We know that someone has to write code to defend privacy, and since we can't get privacy

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unless we all do, we're going to write it.

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We publish our code so that our fellow cypherpunks may practice and play with it.

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Our code is free for all to use worldwide.

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We don't much care if you don't approve of the code we write.

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We know that software can't be destroyed, and that a widely dispersed system can't

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be shut down.

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Cypherpunks deplore regulation on cryptography, for encryption is fundamentally a private

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act.

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That reminds me of the time back when the United States wanted to not allow Iran to

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have certain cryptographic functions.

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It's ridiculous, anyways.

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The act of encryption, in fact, removes information from the public realm.

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Even laws against cryptography reach only so far as the nation's border and the arm

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of its violence.

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Cryptography will, Mr. Hughes, the words that you come up with, inelicutably spread over

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the whole globe.

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Just for the record, I have a college education.

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I don't even have a clue what that word means.

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Unable to be resisted or avoided, inescapable, cryptography will inescapably spread over

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the whole globe, and with it, the anonymous transaction systems that it makes possible,

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and we are seeing that in real time.

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Almost done.

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For privacy to be widespread, it must be part of a social contract.

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People must come and together deploy these systems for the common good.

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Privacy only extends so far as the cooperation of one's fellows and societies.

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We the cypherpunks seek your questions and your concerns and hope we may engage you so

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that we do not deceive ourselves.

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We will not, however, be moved out of our course because some may disagree with our

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goals.

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The cypherpunks are engaged in making the network safer for privacy.

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Let us proceed together apace onward.

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Eric Hughes, and he gives his email.

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Apparently he was at Berkeley, at least back then, 9th of March, 1993.

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I'll have a link to that in show notes.

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I agree with a lot of what he's saying there.

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A lot.

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We have to assume by default that people are not up to evil.

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It's their business.

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If somebody is doing something wrong, there are many other ways of tracking that down.

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To violate everyone's free speech in order to gain an advantage on that person, it's

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not okay.

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It's not okay by the very foundational laws that we have of this country.

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It's not okay if you actually think it through.

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The problem is people don't want to think about it.

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They want to give a knee-jerk reaction and say, oh, that's just a bunch of people laundering

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money.

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Actually, the majority of the transactions, by the very graphs that they're using to say

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that these are money launderers, show that the majority of people are not.

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Now you're seeing all kinds of interesting things like Ethereum addresses are getting

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banned because people will send anonymously 0.1 ETH to an address that came from Tornado

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Cash, kind of as a form of protest.

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These people didn't do anything.

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Why are they being punished?

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It's crazy.

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But we are at a fundamental pivot point in crypto, cryptocurrency, and I think it's a

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very important point.

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People like Kevin O'Leary, who I'm going to go back to this article really briefly.

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I'm going to read a little bit of this article, the article being the show notes, but the

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article says, clamping down on crypto applications that, quote, mess with the primal forces of

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regulation, which please, Mr. O'Leary, tell me what that means, is necessary, says Shark

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Tank host and millionaire venture capitalist Kevin O'Leary, who argued that Tornado Cash

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and similar services are preventing real institutional capital from coming into the space.

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I will respectfully tell you, Mr. O'Leary, that if that is the cost of having, quote,

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real institutional capital, apparently BlackRock isn't real institutional capital, but let's

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set that aside.

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If that's the cost, then I'm okay with that.

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Because I'm in for this for more than the money.

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I'm in for this because of things like this, because money should not be in the control

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of a government.

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Let's rewind history for 2,000 years.

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Romans had what, gold, silver coins?

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Yes, you stamp the head of Augustus Caesar or whoever it was on the coin, and supposedly

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that was official.

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But I could take that gold, it's just gold, and I could go somewhere else and still use

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it.

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What the United States has done, basically since World War II, along with virtually every

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other, quote, first world country, is they've moved off the gold standard and they control

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their fiat, their paper money, and they manipulate it.

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And they do things that enrich certain people, not you and me, but other people, very few

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people, mind you, and everyone else does not benefit.

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In fact, they fall behind.

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I keep seeing countries saying, I just saw it today, the Bank of Canada, the central

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bank of Canada, put out a Twitter talking about, yeah, we want to get down inflation

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to 2%.

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And I think I may do a show about this very soon, but I'm just going to put this out there.

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Of course, Canada, they're very similar to the United States in how they handle money,

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and like the United States, they have quite a bit of inflation going on.

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Well, we want to get it back to 2%.

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Well, why 2%?

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I mean, because this is not the first country, so to speak, that I've heard this from.

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Why 2%?

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That's odd.

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Why wouldn't we want it at 0%?

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I mean, to me, that seems reasonable.

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They don't really give an argument.

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They just say, we want it back to 2%, and it hit me.

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And I did some calculations right before I did this recording.

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At 2% inflation, basically, you lose half your buying power in 40 years in one generation.

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In 80 years, you lose virtually all the buying power of that currency.

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That's why 2%.

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In someone's lifetime, all of their wealth, you can't, it makes it, well, I don't want

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to say you can't, but it makes it very difficult to pass on.

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And 2% doesn't sound very big.

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Oh, it's 2% inflation.

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Well, that means next year that my dollar will be worth 98 cents.

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Well, that's pretty close.

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We're good.

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People can't extrapolate.

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People can't think out long term.

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See, the whole purpose of this podcast is generational wealth with cryptocurrency, but

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with generational wealth.

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I want to have things to pass on to my children, and I don't want it to all be siphoned off

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through inflation.

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And yet, even at 2%, if I live 80 years, God willing, then it'll virtually all be gone.

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And I think that's on purpose.

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I think that's why it's the 2%.

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Why not 0%?

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All right, because the only way they can do that is if you have a currency that's backed

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with gold or some other standard, like Bitcoin, where you only have a fixed supply of $21 million.

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But regardless.

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Okay, sorry, rabbit trail.

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To wrap this up, in a discussion on crypto banter, which I have no idea what that is,

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some show, I guess, on Saturday, O'Leary, also known as Mr. Wonderful, suggested that

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applications like Ethereum-based crypto mixer Tornado Cash are part of a crypto cowboy culture

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that shouldn't have a place in industry.

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Now, first of all, Mr. O'Leary, respectfully, again, you don't know what you're talking

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about.

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It's because of this, quote, crypto cowboy culture, people like Eric Hughes back in 1993,

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who were thinking about these things, that we even have a crypto culture to talk about.

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And second of all, and I don't know where you're from, with O'Leary you might be Irish,

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like some of my ancestors, I have no idea.

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Maybe you live in the United States, but if you do, you need to read your founding country's

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documents and understand them and stop this foolishness, because this is a joke.

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And your opinion actually matters because you got followers on Twitter, and they see

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you on Shark Tank and think that you're a big person, and obviously you've done well

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for yourself in your life, and that's wonderful.

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But you don't know what you're talking about, and until you do, you need to stop.

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Because it makes it hard to have a real discussion about this stuff when people like you come

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on here and say, we should just stop all this.

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At the end of the day, quote, this is a quote from him, at the end of the day, it's okay

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to arrest that guy.

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Why?

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He's messing with primal forces of regulation.

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Okay, so we're just going to arrest somebody because of the primal forces of regulation,

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which again, I still don't know what that means.

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Why?

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What did he do?

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Did he send an email to all the money launderers and say, please come use my service?

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I don't know.

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He wrote code.

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He put something on the internet, and now you're going to arrest the guy.

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And I don't know if he's a U.S. citizen, I don't think he is, but if he is, the United

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States should be out there talking to the Netherlands saying, look, you got to let this

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dude go because whatever, okay, because that's not right.

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But instead, there's silence.

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I don't know.

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I don't know.

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I don't know where this ends.

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My guess is it'll be swept under the rug and we'll move on.

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But I will tell you personally, oh, and by the way, an interesting little fact.

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It's amazing to me, all the decentralized apps such as Uniswap, there was a whole list

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of them.

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There was like, and DYDX, that's a decentralized exchange I happen to be a little familiar

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with.

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These are all quote, decentralized apps, and they've all started banning.

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They're banning addresses based on the fact that those addresses have sent money through

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tornado cash.

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That's how it works.

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So Ethereum addresses.

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So whatever address you live at, if you had gone to another place and then gone back to

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your address, well, now you're banned because you went to that other address.

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It's almost that simple.

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So now you got apps like Uniswap and DYDX and they're all falling in line because they

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don't want to get in trouble with the US government.

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And my question is, why were you created in the first place?

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Why are you decentralized?

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That's kind of the point.

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So you don't have to worry about this stuff.

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And yet apparently it's not.

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So either they're not decentralized or they're not there for the right reasons.

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So I do not know where this is going to go, but I tell you, for me, it will make this

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a much easier decision when it comes to stuff like, where do I leave my cryptocurrency?

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I do not trust one exchange at this point.

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Not one.

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I promise you, US government goes to Coinbase and says, hey, turnover information about

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so-and-so.

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Coinbase will say, yes, sir, as they hand it to them because that's the way this game

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apparently is played, I don't need Coinbase.

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You don't need Coinbase.

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I don't need Kraken.

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I don't need any of them.

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If I did, it wouldn't be decentralized cryptocurrency.

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So over the next few months, I will be taking steps personally to ensure that my stuff isn't

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sitting out there.

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Because this does not sit well with me, just in case you didn't understand.

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Just so I'd be clear, right?

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That's all I got.

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That's it.

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I got nothing else.

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We're going to talk about the market for just a second, and we're going to wrap this up.

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I hope you found that helpful.

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I hope it at least made you think.

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I actually should talk about some supporters first because we have had a few.

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I appreciate everyone who supports this show.

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As you guys know, we're a value for value show.

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I don't take on any sponsors, any advertisers, any crap like that.

Speaker:

Because if I did, then I would have to deal with whatever.

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Coinbase has got insider trading going on, so therefore I can't talk about Coinbase because

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they sponsor my show.

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Well, Coinbase doesn't sponsor my show.

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As I told you a few months ago, they have been in trouble with the SEC for ex-employees,

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which I'm sure was going on while they were at Coinbase, doing insider trading.

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Because in a system like Coinbase, it's very easy to do that.

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You can support the show by streaming Sats.

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You can support the show by boosting through a Podcasting 2.0 app.

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You can find that through NewPodcastApps.com.

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I'm doing this by memory.

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I finally got it down.

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Yay.

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Of course, you guys, I talk about Fountain all the time.

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It's the one that I'm currently using, certainly the most, simply because I love what they're

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doing with Fountain.

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Again, I don't receive a bit of financial gain from this.

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But you can go on to Fountain.

Speaker:

It's got a lot of the Podcasting 2.0 features.

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You can stream your Sats.

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You can boost people.

Speaker:

You can send messages.

Speaker:

And by the way, when you boost, please send me a message.

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Let me know something.

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I'm noticing people are boosting sometimes, but they're not sending messages.

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So that's kind of a bummer.

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Love to hear from you.

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And you can also, as you listen to shows, you will get Sats.

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So I listen to other shows, of course, my favorite, Podcasting 2.0.

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I told them that the other day.

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I sent them a boost and I'm like, hey, you guys are my favorite show.

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And I mean that.

Speaker:

They are.

Speaker:

And you may not want to listen to that show.

Speaker:

It's strictly about Podcasting 2.0 and the developments going on.

Speaker:

Not relevant to the vast majority of y'all, but support your favorite show.

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Support all your shows.

Speaker:

So anyways, there you go.

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Let's see the boosters for the last week.

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And by the way, last week or the week before, I was like, probably both weeks, I was reading

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off boost incorrectly where I'd read it double.

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It's just the way this spreadsheet is formatted that I get from Satoshi Streams.

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I apologize.

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I got to come up with a better system for this, to be honest.

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All right.

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But going back to August the 8th, okay, here we go.

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We got a boost on last week's episode from Jenny Jams.

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That's not the first time Jenny Jams has boosted.

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Thank you, Jenny.

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I appreciate that.

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I do not see a message.

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Maybe it's not showing up on this.

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Hold on just a second.

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Nope.

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I see messages show up here.

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So thank you, Jenny.

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Appreciate that.

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Let's see here, streaming, streaming, streaming.

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That's it.

Speaker:

That was our one boost this week.

Speaker:

So Jenny, appreciate it.

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Appreciate your support.

Speaker:

And we did have some streams, some user names, which people who've not changed their profile

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name, I can't even tell who that was.

Speaker:

So hey, if you are using the Fountain app, it's super easy to change your profile name.

Speaker:

Make it something meaningful.

Speaker:

I'm Macintosh on there, I think, if you want to follow me.

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Okay.

Speaker:

So that's the users for the week, the listeners for the week.

Speaker:

I do appreciate that.

Speaker:

And this stuff is ultimately what will keep me going.

Speaker:

If I'm out here providing value for you, please provide value back.

Speaker:

If you want to do something non-SAT related, I could use help with stuff like transcripts.

Speaker:

I'm always talking about transcripts.

Speaker:

I'm looking at how I can do the transcripts really in the best way.

Speaker:

Getting there, I think.

Speaker:

All right.

Speaker:

Markets up a little bit.

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We did get above 23.8.

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We closed the week above that.

Speaker:

We're at 24,115 right now for Bitcoin, 24,115.

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Ethereum is at 1,900.

Speaker:

Ethereum hit 2,000.

Speaker:

Actually, Bitcoin hit 25,000.

Speaker:

Right now, I think it's debating, to be honest.

Speaker:

We'll see if that 23.8 will hold.

Speaker:

I think it's going to at least go back down and test it a little bit.

Speaker:

So a lot of times, you'll see it'll break a level, it'll go up, and then it'll kind

Speaker:

of come back and test it, and then it'll go forward from there, if that resistance holds,

Speaker:

if that test holds, so to speak.

Speaker:

We'll see.

Speaker:

As always, continue to DCA, continue to do your thing.

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I don't care about the price.

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It's a good price at 24,000.

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It's a really good price at 17,000.

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It's a good price at 69,000.

Speaker:

So you just keep right on DCing.

Speaker:

Don't try and figure this market out too much.

Speaker:

I do believe, I'm hoping, personally, to be honest, that we're kind of in a sideways

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market for the next few months, hopefully, maybe even through the end of the year.

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I would love to continue to DCA at these lower levels.

Speaker:

All right, that will be it.

Speaker:

I'm going to wrap things up.

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I've already been through my thanks.

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I know this was a little bit different, but this fundamental stuff, and this is really

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fundamental, this right to privacy.

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I didn't even get into banks, and my gosh, I've talked about this before.

Speaker:

They track you like you wouldn't believe.

Speaker:

If you want to send $10,000 to somebody from your account, which they already have your

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information on, to another account, you have to go in and say, I'm doing it for this reason.

Speaker:

It's not the government's right to privacy, people.

Speaker:

It's right to privacy.

Speaker:

I don't have to explain why I'm sending money to somebody.

Speaker:

If you think I'm doing something bad, then you have to prove that I'm doing something

Speaker:

bad to an extent before you can just go rifle through my private papers.

Speaker:

Now, the argument that they make and what got through the courts is they say, well,

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the bank is not private.

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It's not your bank.

Speaker:

That's what I understand, anyways.

Speaker:

Oh, and yes, there was a bill earlier this year to lower that from $10,000 to $600,000.

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Fortunately, that stinking pile of garbage got thrown out.

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All right.

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This stuff is critically important, and it's why we should be doing things like holding

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your own crypto and thinking through some of these issues.

Speaker:

Don't buy the surface stuff.

Speaker:

Oh, tornado cash is used to launder money.

Speaker:

So is dollar bills.

Speaker:

The U.S. interstate system, you drive people down the road illegally all the time.

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Do we stop the interstate system because of that?

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No, I think not.

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We do better at enforcing the laws, keeping those people, if they're not supposed to be

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here, out.

Speaker:

I know that's a sensitive topic, and I'm just giving it as an example.

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We don't stop the interstate system for everybody because of that.

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We don't stop using cash dollars because drug people use it to buy drugs.

Speaker:

It's a patently absurd argument, and yet it's the same argument that's being applied right

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here.

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You guys have a great week.

Speaker:

I will talk to you later.

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