[Discussion] Banking on Bitcoin Documentary Highlights

[GDragon]

Hello! Having a lot of time during this quarantine. I finally got to see the documentary “Banking on Bitcoin”. Here’s the link for those who haven’t watch it yet: Banking on Bitcoin

BANKING ON BITCOIN

Bitcoin: the decentralized currency of the internet, grabs the attention of a curious public and the ire of the regulators the technology has subverted.
Initial release: 2016 (USA)

I hope you can spare some time in watching this too! The film is a good introduction to Bitcoin, it’s like the history of how this digital currency was created. The film interviews business owners, as well as people who are against it. They also tackle about the controversies and how the public takes it. And it’s been 4-5 years since it was made. I just thought that the topics discussed in the film are interesting to talk about right now. The film brought me to a deeper perception to why Bitcoin has still a long way to go, and why it was struggling to be accepted around the world. I compiled highlights that I have taken from the film. I hope it can make you interested in watching the film too.

HIGHLIGHTS

• According to Charlie Shrem, co-founder and CEO of BitInstant, Bitcoin is cash with wings, it’s the ability to take a local transaction and do it globally, he believes Bitcoin will overturn the financial infrastructure, it is the largest socio-economic infrastructure the world has ever seen. Eric Voorhees worked as Director of Marketing at BitInstant.

• Jed McCaleb created Mt. Gox(Bitcoin Exchange site) because he couldn’t buy bitcoin as quickly as he wanted to. However, he was overflowed by the legal risk, he sells it to Mark Karpeles.

• Zimbabwe is a good example of a government that lost the trust of the people by printing too much money that causes hyperinflation. Those people who experiences government and bank failures are the people who are looking for something new(Bitcoin).

• 2.5 billion adults around the world doesn’t have bank accounts, Bitcoin has the capacity to take those people in the financial system. A bank in their cell phone and a bank in their pocket.

• People are looking in sending money globally, Western Union is a way but it is really expensive. Bitcoin is cheaper, easier, and more convenient. Remittances will be one of the big first uses of Bitcoin because they didn’t care about borders.

• Ron Ulbricht founded Silk Road website. An online drug market in the internet that can sell anything, best known for illegal drugs. The currency use is Bitcoin.

• Charlie Shrem made a mistake with dealing with BTCking Robert Faiella, he acknowledge that he knew that BTCking is acquiring bitcoins to sell it to Silk Road costumers. Charlie work with the guy, he wrote emails that acknowledge that he knew what BTCking was doing.

• Founder of Silk Road, Ron Ulbricht was convicted on seven charges including narcotics and money laundering in a manhattan court room. Feds auction 13.5 million dollar’s worth of silk road bitcoins.

• People now see Bitcoin as a haven for drug dealers. They think Bitcoins are nothing but illegal drugs on the internet. Bitcoin price took a little dip after this event but still goes up.

• Charlie Shrem was arrested for alleged money laundering because of the Silk Road Case. But for him, its just one customer, and he has thousands of customer.

• A day after the arrest of Charlie Schem, a bitcoin hearing is held in New york lead by Benjamin Lawsky. The fact finding effort was to propose a license framework for the virtual currency firms operating in New york.

• According to Eric Voorhees, bitcoin is a battle of ideas and it forces the issue of whether people should be as free in their handling of money as they are free in their handling of speech, religion, or relationship with each other. They said in order for the Bitcoin to go mainstream, you have to let regulators weigh in on it. Lawsky was the one interested in it, he wants to come up with the license for bitcoin companies, he calls it BitLicense.

• A week after the hearing, 750,000 btc are stolen or lost in Mt. Gox. Which counts about 6% in the total circulation. Mt. Gox files for bankruptcy and blames hackers for the lost of money. The important lesson from this Gox incident is you can't trust a third party for your money. Eric Voorhees said this is the lesson people should learn at the financial crisis but they don’t have seemed to learn it yet.

• Spring of 2015, Bitlicense finally came out. lot of companies complained that the regulations are too burdensome for them to operate in New York and still make money. Companies would have had to apply for bitlicense if they wanted to engage in digital currency business activity.
  
  Point of BitLicense according to Lawsky:
  1. Make sure there are enough consumer protections.
  2. Make sure we have adequate cyber security.
  3. Make sure that the companies are adequately capitalized so they don’t collapse upon themselves.
  

• Lawsky leaves the government and opens a firm to consult Bitcoin companies, navigating the BitLicense application process. Eric Voorhees describes it as the very definition of crony capitalism.
  
  

  Lawsky see a new ecosystem being built(Bitcoin), he said that he will protect the consumers, he built a huge wall around it, then he charge every person who passes the gate.
  -Eric Voorhees
  

• Banking system and the financial industry co-opting bitcoin. They are trying to create their own private blockchain where their computers are powering it rather than those anonymous miners, they want control over the system. Eric Voorhees is not bothered by this because he believes bitcoin is decentralized and cannot be controlled no matter who they are or how much money they got.  

ENDING STATEMENT

As of the completion of the film, Charlie Shrem is still serving out his sentence at Lewisburg Federal Prison. No wall street executives have served time for the 2008 meltdown. No major bank executives served time for money laundering charges.

I like how the film explains Bitcoin with its history. It shows how Bitcoin can change the world globally, how dangerous it can be, and why the government and financial institutions are threatened by it. I think the ending statement wants to highlight how unfair it was for Charlie Shrem, and for the Bitcoin community, one mistake and they wanted to end the rising technology. Bitcoin isn't "ony about that". They started to label it as a currency only used for illegal activities. It is just a tiny part of the economy of Bitcoin. It makes me realize what Eric Voorhees said in the film, dollars and other currencies are used for drugs too, it is the "bad guys" who is at fault using it for illegal activities. Money controlled by the governments are problematic too.

"No wall street executives have served time for the 2008 meltdown, no bankers served time for money laundering charges", but this 23 year old entrepreneur that help established the bitcoin industry, an alternative to government money, is going to jail. While bankers almost destroyed the economy, and none of them got into trouble.

The film makes me wonder if we are still seeing the future the same way the film see it? A lot has happened in 5 years. Anyone who have watched it can also comment their take about the documentary. If there’s anyone who can provide links or updates about the topics tackled in the film, please do so, in that way we can see how Bitcoin developed for the past years!


-GDragon

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[Charles-Tim]

What I really like about this is the fact that bitcoin makes it easy to do international transactions with ease. I do not need to go to western union or use wire transfer. This makes bitcoin really worth it even with lower transactions fee compared to those fiat alternatives. I can be in my bed and transfer bitcoin to a family member or a friend that are not in my country. And, it takes few minutes for them to see it and convert it to cash if they want. Now, it takes me few minutes to convert bitcoin to cash and send it to my bank account.
So, bitcoin, in short, makes life easy. I like this point so much and I love BTCitcoin.

[GDragon]

What I really like about this is the fact that bitcoin makes it easy to do international transactions with ease. I do not need to go to western union or use wire transfer. This makes bitcoin really worth it even with lower transactions fee compared to those fiat alternatives. I can be in my bed and transfer bitcoin to a family member or a friend that are not in my country. And, it takes few minutes for them to see it and convert it to cash if they want. Now, it takes me few minutes to convert bitcoin to cash and send it to my bank account.
So, bitcoin, in short, makes life easy. I like this point so much and I love BTCitcoin.

Yup, its much easier. A bank in your pocket. Also, sending remittances using Western Union can also cost you higher fees depending on the amount of money you send.

[finaleshot2016]

I saw this on Netflix, it's a great documentary to watch. I really like the film, and it makes me understand that technology is a wonderful thing and that it changes our lives.

For those people who are curious about how Bitcoin starts, it is a nice and understandable introduction. The film also mentioned the idea and definition of creating Bitcoin. I've just noticed that the film is giving a lot of time to Mt. Gox and Silkroad's happenings, and I might say that it should have a sequel. Finally, the film will definitely make newbies dig more unforeseen stories and situations in bitcoin that affect the entire community.

[GDragon]

I saw this on Netflix, it's a great documentary to watch. I really like the film, and it makes me understand that technology is a wonderful thing and that it changes our lives.

For those people who are curious about how Bitcoin starts, it is a nice and understandable introduction. The film also mentioned the idea and definition of creating Bitcoin. I've just noticed that the film is giving a lot of time to Mt. Gox and Silkroad's happenings, and I might say that it should have a sequel. Finally, the film will definitely make newbies dig more unforeseen stories and situations in bitcoin that affect the entire community.

Yup, its a good one! It makes us understand the reasons why bitcoin has the status it has right now.  I have read that many documentaries are in production now. I hope those documentaries can deeply tackle about the future of bitcoin, not just the history of it. I am waiting for a documentary that talks more about the future. A documentary with an honest take about bitcoin being used as a currency. Of course with the use of valid research, interviews, experts and people.

[bgaf]

Yup, its much easier. A bank in your pocket. Also, sending remittances using Western Union can also cost you higher fees depending on the amount of money you send.

Nice post. Ive watch this already and this is one of the best documentary to explain or to grasp idea on how bitcoin works perfectly. A long film but totally worth it. Not just benefiting through remittances but everywhere that accept bitcoin. In my country, many establishment started to accept it especially those app rated for delivery and purchase store. Like shopee, I am getting excited with all the establishment being one by one adopt bitcoin. Hopefully our biggest mall retailer would accept it now on their mall soon.

[achach]

Banks are absolutely impossible to combine with bitcoins, they are two different elements like water and fire

[buwaytress]

I like the concept of helping the unbanked too, but I wonder how many of these people talking about it have actually met any of these unbanked? I know it's not absolutely critical that you have to come face to face with problems to solve them, but to say that Bitcoin lets you have your bank in your cellphone and in your pocket is absurd when you think about these unbankables.

You have had to live with them or live like them and face their problems (banks won't let you open an account or loan you any money) to understand why Bitcoin isn't as accessible the way we think it is for them.

A few numbers I know to be true, having lived and worked with these so-called unbanked:
1. Average family size 6.
2. Average cellphone per family 1. And no, it's not going to be able to be your wallet. It's at best semi-smartphone, minimum data capacities and used mainly for SMS (which makes mobile money great for them but not bitcoin).
3. No internet access. Data, when and if available is expensive and used to communicate, rather than connect outside.

So many more difficult access barriers.

I love Bitcoin. But it's not quite the magic wand we're making it out to be. Charlie Shrem and all those named people have no real grasp of the unbanked. That's not their fault, but there you go.

[GDragon]

I like the concept of helping the unbanked too, but I wonder how many of these people talking about it have actually met any of these unbanked? I know it's not absolutely critical that you have to come face to face with problems to solve them, but to say that Bitcoin lets you have your bank in your cellphone and in your pocket is absurd when you think about these unbankables.

You have had to live with them or live like them and face their problems (banks won't let you open an account or loan you any money) to understand why Bitcoin isn't as accessible the way we think it is for them.

A few numbers I know to be true, having lived and worked with these so-called unbanked:
1. Average family size 6.
2. Average cellphone per family 1. And no, it's not going to be able to be your wallet. It's at best semi-smartphone, minimum data capacities and used mainly for SMS (which makes mobile money great for them but not bitcoin).
3. No internet access. Data, when and if available is expensive and used to communicate, rather than connect outside.

So many more difficult access barriers.

I love Bitcoin. But it's not quite the magic wand we're making it out to be. Charlie Shrem and all those named people have no real grasp of the unbanked. That's not their fault, but there you go.

I agree with you, I lived with the unbanked too. I have a friend who doesn't even own a phone. His father own one but the keypad one, not the android one who can acquire data. Its easy to say from them but somehow it is still be hard for others to use bitcoin because of this problems.

[alizarosa2123]

Decent post. So far this has been observed and it is probably the easiest narrative to have any idea or thought about how Bitcoin works great. An enhanced film though as it recognizes Bitcoin anywhere it is worth a profit through disposal. Numerous systems within my nation have begun to embrace applications that are clearly planned for vehicle and store purchases. Like Shopee, I am making all the arrangements to take Bitcoin together. Ideally our biggest shopping retailer will soon be accepting it at their shopping ledge