Alex Gladstein: Bitcoin, Authoritarianism, and Human Rights | Lex Fridman Podcast #231
kSbMU5CbFM0 • 2021-10-16
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Kind: captions Language: en the following is a conversation with alex gladstein chief strategy officer at the human rights foundation and the oslo freedom forum in recent times alex has focused on how cryptocurrency and especially bitcoin can be a tool for empowering democracy and civil liberties in the world most crucially parts of the world that are living under authoritarian regimes as a side note let me say that i have been learning a lot about the ways in which money can be used to amass power and in the same way the decentralization of money can be used to resist the corrupting nature of this power alex and i do not agree on everything but we strive for the same betterment of humanity he is sensitive to the suffering in the world and is dedicating his life to finding solutions that lessen that suffering whether bitcoin is one such solution i don't know but i think it has a chance and that means it is worth exploring deeply i'm staying in this path of learning patiently and with as little ego as possible i hope you come along with me on this journey as well this is the lex friedman podcast to support it please check out our sponsors in the description we recorded this conversation a while ago and i thought i lost the audio and was really disappointed with myself for messing this thing up but luckily last week i found it and so rescued from out of the abyss of non-existence here's my conversation with alex glastine what are some universal human rights that you believe all people should have so free speech freedom of assembly freedom of belief freedom to participate in your government the freedom to have privacy the freedom to own things property rights these are all basic fundamental negative rights what we call them these are the basic fundamental human freedoms what does negative rights mean negative rights are liberties and positive rights are entitlements so after world war ii when the un came together it was largely a compromise between the communist soviet union and the you know free united states right so the u.s had uh on its side of the u.n declaration of human rights a bunch of liberties essentially things like free speech freedom of association freedom of assembly the soviets wanted entitlements uh like the right to work the right to have housing the right to water the right to a vacation so you actually read the un declaration for human rights it's a negotiation between the soviets and the americans later there was another document in the 70s released called the international covenant on civil and political rights and this is what ahref uses as its sort of like lodestar it's founding document and this is like essentially an international agreement on the negative rights those are the things we choose to focus on because essentially authoritarian regimes can commit fraud and claim they're giving the positive rights the entitlements without having any of the negative liberties and they can do that because they don't have any like free speech or press freedom um when you when you take people's basic fundamental freedoms away it's quite easy to make like a potemkin village and pretend that there's the entitlements and that we have good uh health care and you know it's the same sort of thing that authoritarians have done for decades uh cuba and venezuela and and the soviet union do you think it's possible for authoritarian regimes to manipulate to kind of lie about the negative rights as well by saying that the people have free speech uh the people have the freedom to for assembly and all those kinds of things can't you still manipulate the idea that the citizenry still has those rights the opposition leader of malaysia anwar ibrahim he once told me that the funny joke that you know in my country we have freedom of speech we don't have freedom after speech so yeah they can absolutely manipulate whatever they want but i've done research into socioeconomic data and i guess what i'm telling you is that authoritarian regimes which make up 53 of the world's population across 95 countries um about 4.3 billion people those who live under those regimes are subject to massive fraud when it comes to things like literacy rates life expectancy um any sort of socio-economic data economic growth they can do this because there's no free press um so for us at the human rights foundation and for people like me we believe that the negative rights the liberties the things that are in for example uh the bill of rights in the u.s constitution these things are the table and then we can build on top of that we can build the rest of our societies on top of that the freest countries in the world have both the negative liberties and the entitlements like norway for example but there's a big difference between norway and north korea in north korea they only claim to have the entitlements and they definitely don't have the liberties do you think there's one right that's more important than others you kind of suggested the freedom of the press maybe freedom of speech that if you take that away all the other ones kind of collapse along with like from a ripple effect is there something fundamental that you like to focus your attention on to defend to protect to make sure it's there yeah i think i think free speech is probably the most fundamental it's probably why the founders chose to make it into the first amendment um a lot of things are downstream from there property rights are also very very important obviously we've seen the the toll of violent redistributionism you know in over the last hundred years uh whether it was uh lenin or stalin or mao or other regimes and everywhere from ethiopia to colonial colonialists everywhere to north korea it's not a pretty legacy is free speech clear to you as a concept there's been quite a few debates especially in the digital age what it means to violate freedom of speech there's been a lot of new like novel mechanisms for people to communicate with each other like especially on social networks and it seems that uh unclear because a lot of times those are managed by private companies it's unclear how much protection do the citizens have to have when they're communicating a lot of people are being censored on these social platforms some people even presidents get removed from those social platforms have you thought about the freedom of speech in the united states but in in the world as it as it's implemented in the 21st century given the internet and all those kinds of things there is a soviet dissident named natan sharonsky who survived the regime and he wrote a book in which his thesis was essentially the way that you can define a free society is through something called the town square test can you go to a public space where you live and criticize your ruler loudly without fear of retribution if you can do that you have you have free speech i think that's a pretty good litmus test most people in this world cannot do that if you live in havana if you live in moscow if you live in beijing you cannot do that and that's not a free society in austin texas in boston massachusetts in london in santiago chile and tokyo japan in many democracies you can do that and i think that that's a really helpful basic sort of litmus test does the content of the criticism matter can it be complete lies meaning conspiracy theories that involve claiming that the leader is let's say a lizard slash pedophile slash you know i'm not saying that those are lies look into it but uh they're very unlikely phenomena so like does that matter i i think it ends poorly when the state tries to restrict speech um i think that's kind of how i would define censorship i think censorship and de-platforming are two different things private companies you know they get to make up their own rules about what's allowed on their platforms and i think that's very different from a government with guns and an army restricting the speech of its citizens with threats of violence these things are different for me that violence is a fundamental difference i don't know i i um i've gotten a chance to have dinner with alex jones and uh i've talked to him a few times offline and it does i understand why people are so off-put by him but it does bother me that he's universally removed from every platform it feels like there's many more evil people bad people compared to alex jones who still are given a voice on these platforms and so i'm uncomfortable with the universality of the application of the censorship by uh by these platforms but on the flip side you're right there's not a violence there's not tanks there's not guns behind that censorship yeah it's a bit of a generalization but alex jones would be in prison or dead if he were in north korea or in cuba or in russia or in china the the authorities would not tolerate him to do what he did and here he can kind of do what he wants he's encountering some resistance in the marketplace of ideas large organizations corporations and a lot of public sentiment uh in different parts of our country don't like him and they're doing their best to drown out his voice but that's very different from a violent threat of censorship from the state and that's what we study that's what i study are these you know what is the state doing that's kind of paramount for for me yeah and that's true because in the marketplace of ideas there could be a company that springs up that gives alex jones a platform and the united states is not going to prevent those companies from functioning of course there's uh from a technological tech from a technology perspective there is uh aws removing parlor from the platform and gets a little weird you know as you get closer and closer to the computer infrastructure because then you get closer and closer to the state actually the the more you get to the infrastructure that's usually managed by the state the closer it gets to the control of the state i would argue aws is pretty damn close to infrastructure that's kind of controlled by the state if you especially look at other nations uh china russia there's uh i don't know who runs the compute infrastructure for russia and china but i bet the state has complete oversight over that and so that level of compute infrastructure having control about which social networks can and cannot operate is very uncomfortable to me but you're right i think it's good to focus on the obvious violations of these principles as opposed to the the gray areas of course the gray areas are fascinating you mentioned hrf human rights foundation what is it uh what is its mission yeah so i've been working for href since 2007 um we are a charity a non-profit a 501c3 based in new york and our mission is to promote and protect individual rights and freedoms in authoritarian societies around the world so again we we define about 95 countries as authoritarian meaning it's either a one-party state or opposition politicians are outlawed or persecuted there's no real free speech there's no press freedom there's no independent judiciary there really aren't checks and balances and even trying to create like a human rights organization or like an environmental group would be illegal um and the majority of the world's population lives in that environment that's very important you said 53.63 4.3 billion people and i saw you outlined a lot of different um sources of suffering in the world and then you sort of put people living under authoritarian governments as like more than all of them i i forget i forget all the examples you provided but sure i mean it's uh yeah maybe a convention if you remember the number of people who are refugees the number of people who suffer from natural disasters the number of people who live under abject poverty the number of people who don't have access to clean drinking water all of these are dwarfed by the number of people who live under authoritarianism and yet it's not something that we talk about a lot because people are mercantilist and the powers that be are happy to sacrifice freedoms and privacy for money we live in a profit-seeking world to get evidence of this take a look at the list of sponsors of the upcoming olympics in in china where the ccp is currently committing genocide against the weaker population or look at the number of people and the famous investors who went to saudi arabia a couple months ago for the davos in the desert i mean ray dalio was there all kinds of people were there and or at least they were invited and they said they were going to go and this is a government that at the time was torturing a female activist who just wanted to drive a car this is a government that had murdered jamal khashoggi uh in a brutal fashion uh just a couple years earlier so i mean at the end of the day when when it comes down to brass tacks i mean you know the powers that be the even the free countries are led by people um who are very very happy to sacrifice all these pretty words about human rights when it when it comes down to profits unfortunately so do you think capitalism that's maybe one of the flaws of capitalism as it turns a blind eye to injustices against human nature against the human rights like it turns a blind eye to authoritarian governments look i think that at the end of the day like free trade is actually really good um and you can just look at france and germany as an example of of how like a capitalist structure would develop if you have two capitalist actors they're very unlikely to fight each other there's very unlikely to be violence right these are two countries which basically murdered some large percentage of each other's male population three times in a hundred years in three different wars right and now today war is like unthinkable and a lot of that is because of increased collaboration increased trade so when you have two capitalist actors they act in a very productive way with each other um but as soon as you introduce an authoritarian actor you know all bets are off so i think what you have is a conflict between capitalist actors and authoritarian actors and at the end of the day people need to yes have more than just capitalist intentions in in the geopolitical level i'm talking about they need to actually take a stand for principles otherwise you have athletes and businesses and governments that are all too happy to to do business with the chinese communist party for example right now i think that there is a little more than just kind of the pure um the pure profit yes you mentioned what are the signs that uh the state is an authoritarian state how do you know if you're living in the authoritarian state or when you study another nation or analyze the behavior of another nation how do you know that's an authentic authoritarian state is it as simple as them having a dictator is it as simple as them as declaring that they don't have a democracy or is there something more subtle there's a couple good litmus tests one is actually can you have a gay pride parade that's a good serious it actually lines up perfectly it doesn't matter what religion the dictatorship is yeah they don't like minor they don't like minorities and they love to scapegoat whether it's gays or religious minorities etc so it lines up pretty well that's really if you cannot have a gay pride parade in your country because you're fearful that you're going to get the crap kicked out of you probably live in an authoritarian regime um i'm sure that it's not just about some kind of homophobia why is that that's really interesting because that's right i'm going through so the fascism scapegoats minorities there's an other you create another group and then you yeah i mean uganda is a great example of this but so is saudi arabia so is china um i mean so is cuba i mean these are all regimes which demonize the you know lgbt communities it's interesting because maybe you can correct me but from my very distant outsider perspective uh the sort of the way that uh certain authoritarian governments speak about uh gay people is it's almost like what is it um we don't have gay people in our country kind of idea as opposed to scapegoating scapegoating which is like well denial is the most powerful form of demonization i mean this is what the iranian dictatorship does a few years ago when ahmadinejad who was who was then sort of the de facto later he came to columbia university and he tried to give a speech which you can look up and he tried to claim that there were no gays in iran and that's the most powerful form of demonization is trying to just wipe out your utter existence there's other good litmus tests too um you know for example you you can think about comedy um can you make money making fun of your government on television if you cannot you live in a dictatorship most likely i mean it's shocking to people that i work with who live in dictatorships when i tell them that not only are comedians uh able to safely make fun of our government but they get paid very well to do so that's a hallmark of a free society so that's another good litmus test hear that tim dillon you should go to north korea check it out yeah and look there are tons of flaws with democracies these are really good tests by the way the united states is a deeply flawed country in many ways our prison system is a disaster um there's you know a horrible war on drugs we committed a grievous uh crime in my opinion by invading iraq like we did a lot of problematic things but our core architecture is still an open society um the people who criticize the us the most usually live within it and if they were to move to a different country and try to use that criticism against their new rulers they wouldn't fare so well so whether it's chomsky or whomever if they were to go to cuba and live in cuba and try to criticize cuba like they do america it wouldn't last very long so i think what's important to distinguish between open societies and closed ones or like like free societies and authoritarian regimes it doesn't mean that your government's going to be good all the time what it means is that the citizens have a way to push for reform have a way to hold the rulers accountable so even if you don't like what the u.s government does whether it was under biden or trump or obama or bush we can rotate them through voting and we have an independent supreme court that rotates over time and we have people that we can elect directly to serve our interests and then there's like a free press and there's lobbyists and all kinds of people that jostle for power so there's a separation of powers and i like to think about a free society really as like at the bottom of the foundation of the pyramid really would be free speech and then you would have civil society like for example um human rights organizations environmental groups stamp collectors athletes any groups that come together you know beyond the government's sort of strict instruction and then on top of that in the third level you have separation of powers again what i'm describing so authoritarian regimes don't really have any of these layers to them right and then at the top then you put elections but the elections are meaningless if you don't have the foundation below every dictator gets elected kim jong-un gets elected he's the only person on the ballot every dictator from hitler to chavez they all got elected elections on their own mean literally nothing you have to have these other layers beneath to actually be an open and free society i think it's very important for people to understand although hitler in an interesting way at a certain point just said i'm going to be a ruler forever which is interesting the there's an important switch that happens when you as opposed to having a facade of elections you even you just put that aside and saying basically like we're not even doing this yeah there's like a ladder that you climb the election and you pull the ladder up and then no one else can climb up this sadly it happened in egypt and it was quite predictable after mubarak was ousted after the arab spring you know morsi came in and it looked like you know the muslim brotherhood was not really going to be very democratic um but it didn't really matter because then the military came back and now we have cece who's even worse than mubarak so a lot of times in these regimes unfortunately it's very difficult for people to build that democratic society afterwards um some people have told me that when you live in a totalitarian or an authoritarian regime it's kind of like a political desert what grows in the desert scorpions and cacti right so basically people with very extreme views because you as an authoritarian ruler your best method for control is to get rid of the moderates you have to crush the moderates that's very important you want to have the only opposition to you be extremists that way when you go and have negotiations with the united states you can kind of hold up the terrorists or whomever the extremists and say it's either us or them right and then the realists who run the us government are going to choose you and that's why one of the reasons why the u.s government has supported so many dictators around the world over the last few decades do you think authoritarian systems emerge naturally like that's the natural state of things if you take if you incorporate what human nature is will there go is there always going to be corrupt people that rise to the top and we almost have to um construct systems that protect us against ourselves kind of thing another way to ask that um is what kind of systems protect us from our own human nature we started with authoritarianism or autocracy right ruled by one or or a small group oligarchy and all humans lived under this structure for you know the the virtual you know bulk of all human existence only until pretty recently did we start having actual democracy uh the idea that we should be ruled by rules not by rulers very powerful invented in many places across the world western africa had this idea and so did the ancient greeks and they started to implement it although as most know we didn't have full democracy for a long long time because it was only property owners or only men only per people of a certain race but this idea that that we can like rotate our rulers and that we could be ruled by rules is extremely powerful and it really like for me the ideas behind this um i think unlocked a lot of the industrial revolution these small personal freedoms that were allowed in some countries but not others and they unlocked a lot of the scientific innovation over the last few hundred years um and to me there's like a really straight line between like scientific inquiry free speech freedoms and then more prosperity and more effectiveness as a civilization so i i think that democracy you know ruled by the people is definitely an upgrade from autocracy or oligarchy you know which would be rule by by one or a rule by a small group and i think that the the democratic revolution has been an incredible thing for our world and it's it's you know you could do half class full half class empty the half class full is that almost half the world lives under democracy like that that's an incredible achievement but just under half yeah just under half so uh but that's billions of people is billions of people and if you look at the progress of things it's getting better and better and better i mean if you know yeah we're a little bit of a um stalemate here uh democracy's really blossomed uh between world war ii and the year 2000 especially in the 80s and 90s you had an incredible wave of fault you know where many many authoritarian regimes fell and were replaced by democracies i think around 20 2015 the the acceleration kind of came to a standstill a little bit um there's some good news in some countries and there's bad news in others um like in the last 10 years you've had for example the philippines has gone backwards um thailand has come backwards bangladesh has gone backwards turkey has gone backwards that's that's like a half billion people right there so you've had some positives um like you know there was positive movement forward in armenia malaysia some other countries um but we're kind of at a stalemate right now and what most people fear them about where we are right now who i respect is what does the digital transformation of the world do to this like progress of democracy uh or of open societies and and that's what concerns me the most oh interesting so i've and we'll talk about well one of the most fascinating technologies which is bitcoin how it can help but i have a sense that technology like most technological innovations will give power to the individuals we'll give will fight fight authoritarian governments supposed to give more power to authoritarian governments but your sense is there's ways to give for technology to be utilized as a tool for the abuse of the citizenry i've seen both in my work at href i started by helping to put together backpacks with foreign information that we sent to the cuban underground library movement so in cuba you know to own a book at the time you had to have the government's permission there's very little internet penetration okay so we would send in movies you know v for vendetta dubbed into spanish and people would sit inside their homes yeah and they'd watch it and they would answer questions with each other it was very powerful and then after that i worked with people inside north korea we would send in flash drives we have this program called flash drives for freedom we've sent over a hundred thousand flash drives in our work into north korea a country of about 25 million people that's a lot it's a big big difference that's you know many many millions of hours of films books movies etc so i've seen the power that technology can have where you know in the 60s and 70s you know to get to break an information blockade you had to like send in crates of books into a communist country so now all of a sudden you can send the entire contents of what was once the library of alexandria on something the size of your thumbnail like that's remarkable so obviously i've seen the positives of technology we'll certainly get into bitcoin but i'm you know very concerned about essentially big data analysis like or what people call ai or general you know specific specific kinds of ai like very concerning i think these are very authoritarian i mean it's very hard to make a case that ai is going to be good for human rights very difficult in my opinion it may be good for health it may be good for our efforts to protect the planet it may be good for a lot of scientific things i find it very hard to believe it'll be good for civil liberties oh that's fun this is fun because i disagree uh give me your examples i'm serious what what ai applications will improve civilization i thought you meant examples of stuff that's already out there because i can give you examples that for for example the kind of things that i would like to work on but also the kind of things i'm hoping to see which is ai could be used by centralized powers by governments by big organizations like facebook and twitter and so on to collect data about people right right but i believe there's a huge hunger among people to have control over their own data so instead you can have ai that's distributed where people have complete ownership of their little ai systems so like the kind of stuff that i would like to build or like to see to be built is you could think of it as personal assistance or ai that's owned by you and you get to give it out you have complete control over all of your data you have complete control over everything that's uh learnable about your day-to-day experiences that could be useful in this in the market of um goods and ideas and all those kinds of things so it has to do with so you i know you talk about the surveillance which is very interesting it's who gets to have control of the data and i think i i believe there's a lot of hunger in among regular people to have control over their data such that if you want to create a business you have a lot of money to be made from a capitalist perspective by providing products that let people control their data where you have no control it sounds like to me you're describing encryption or at least the the ability to encrypt the ability to use uh digital keys to secure your property and i that to me is a very powerful uh individual right force for individual rights very powerful and it's what's what animates bitcoin ultimately which we'll get into but for me at least the way i look at it today in 2021 the threat from big data analysis used by governments and authoritarian regimes is terrifying i mean to actually see what the chinese communist party is doing where they have hundreds of millions of cameras overseeing society cameras that can tell who's a uyghur and who's ahan that to me is terrifying and and everything is sorted instantly there are there are super computers that are built in urumqi in xinjiang for this explicit purpose and you know it allows the government to quickly sort and basically commit genocide a lot faster and it's really scary so i do agree and i've seen personally how powerful technology can be as a force for freedom um but i'm i'm very very worried about big data analysis in the hands of governments see that's funny because i i tend to see governments as ultimately incompetent in the space of technology to where there will always be lagging behind so you look at what the chinese surveillance systems are doing i i believe when once you start getting bad enough that like technologies would be created to resist that so to mess with it from from the hacker community but also from the individual community so surveillance is actually very difficult from a centralized perspective to detect uh you know to collect data about you to detect everything you are because you can spoof a lot of that information so i believe you can put power in the hands of the citizens to sort of feed the government fake data to confuse it at a mass scale to where it will make their surveillance less effective but that okay that could be very sort of hopeful yeah i mean the practical application in xinjiang which is a territory the size of alaska where a large percentage of the population has been put into prison camps um the current issue of the new yorker has an absolutely harrowing uh essay that that tells the story of one such woman who in i believe 20 2017 got sucked into one of these camps and it took her a year or more to get out um and and she's talking about how in each home in xinjiang each home has a qr code on it that the police can scan and get like a quick instant download of who lives there each car has you know like a scannable code every every single person has their dna taken and the dna is being sifted through and analyzed by algorithms so this is like the chinese government's laboratory for how can we use technology to oppress a sort of like digital leninism and that to me is one of the biggest uh risks in our world today and it's not talked about enough that's interesting so technologies basically enables the automation of oppression absolutely so like but to define technology big data analysis and you know maybe specific ai etc does but encryption allows us to fight back it's very important people understand we have tools to fight back you know big brother can only grow if it can feed on your data if it can't get your data it can't grow so you have to willingly give up stuff to the cloud um for this monster to grow we can we can we can like make the monster hungry and shrink it if we give it less data and i think that's where i would agree with you in terms of like wanting to empower people to be able to do stuff on their own terms in a sovereign way and yeah maybe you're you're kind of thinking like the personal assistant who helps out tony stark or something like that and and that's yeah as long as there's no back doors and that's a sovereign thing that you've popped up and created and you have the keys to absolutely but practically speaking if we're talking about the world today as is we need to be concerned about the way that authoritarian regimes are using big data analysis and they're going to buy the software and this equipment from the chinese government they're already doing it street level surveillance has already been purchased by governments everywhere from latin america to sub-saharan africa to the heart of europe um there's been huge scandals in britain over their purchase of chinese surveillance technology um part of the chinese government's belt and road campaign which is basically to build the infrastructure of this century and to be in control of it is this idea part of that idea is to is to ship out and install surveillance technology both at the telecom level and at the surveillance level across dozens of countries around the world and have that back door right there's this national security law in china which states that like companies that are chinese which are abroad are mandated to send data back to beijing right so they're building this like huge global surveillance state and again not talked about enough you should go google and research the belt and road i think it's very important that we confront this yeah i'm really glad you're talking about it because it's probably important to understand i'm also hopeful that as people get educated about how much their data when collected unencrypted but in general can be used to harm them i mean it's almost like an education i feel like if you know it's a double-edged sword because i feel like people become fearful too easily and that actually has a very negative effect on the quality of life in some sense you want to have tools that allow you to live freely as opposed to living fear if you live in fear it's not a good way to live so it's a it's a balance um it's a free society versus a fear society yeah people are it's all about the trade-offs you make in your daily life like living more privately with more freedom is less convenient you trade freedom and privacy for convenience and comfort and speed absolutely it's an engineering decision in everything that you do um in the west we in advanced democracies we have not necessarily personally seen the results of that trade-off because we've we live in these free societies that have these checks and balances and freedoms but as soon as you step into an authoritarian state and you make those trade-offs your life you know immediately becomes more more restrictive and and what people are worried about is that even in advanced economies market democracies etc the people are worried that they might not survive the the great social digital transformation um you know look at what the nsa is capable of doing i mean for now it's not that big of a problem because we still have free speech um but it's deeply concerning what snowden revealed and it's a nice reminder that we need to be focused on on privacy and encryption and on helping users become more more sovereign regardless of where you live it's kind of like a crutch to live in a free society like you know it's almost like a free lunch in a way um you're not going to be sent to a prison camp because of the color of your skin or your beliefs or what you say about the government and you're very lucky again most people do live in a society where you you can be persecuted for those things and i feel like especially in america we we forget that we're we're distanced from that really strong reality you know on the topic of snowden and then nsa what should we be thinking about because that feels like a already an outdated set of conversations because of the information we've gotten from the past it feels like everything's gotten quiet now in terms of how much we actually know about the hugely important i i think the two lessons from snowden are a the the patriot act and the war on terror and mass surveillance are not necessary for our democracy and for our freedoms um this was a false choice we never had to sacrifice them to be safer um and and we've seen that government has spent hundreds and hundreds of millions of dollars on these like surveillance programs that you can read about and amounted to very little except for tremendous bureaucratic waste and you know you know erosion of our freedoms but at the same time we need to practice more privacy and the dramatic increase in the usage of signal for example has been really really great to see it's it's fantastic that tens of millions of people are downloading signal and using it um you should try to be onboarding more and more of your conversations onto signal for example where governments can't see what you're saying maybe they can see the metadata maybe they can see that you sent your phone number sent a message to someone else's phone number at this time but they can't see what's inside so using encryption in your life is very very important that's a good starting point i would say that's kind of step a the ideas of democracy the ideas of the balance of power um the all the ideas that we were talking about the constructs were inventions i wonder if there's other inventions that will allow us to sort of not engage not give governments or any centralized institutions so much power like why why do citizens have to use signal why because that's an effort you have to be because you have to like understand exactly why so that's a nice little solution for a particular set of problems but like there's a million other ways that data i'm sure is being collected constantly if we don't create a system that prevents the establishments of these centralized powers then we'll always have this problem yeah i think we can keep it simple for the purposes of this conversation you have politics information and money those are the three things i would encourage us to focus on in politics yes someone invented democracy i mean whether it was the greeks um the west africans or many others around the world around the same time invented this idea that we should be ruled by uh rules and not by rulers right um and that has evolved dramatically right and now you and then you have information information also used to be highly centralized right you know think about how rich you had to be to gain access to a library before the printing press or you know how much money you had to have or how close to the king or the you know feudal lord you had to be to be able to have that ability but now you know the majority of the world billions of people have access to all information in their pocket and they can set up an account on social media and get their word out so not only politics but information has been dramatically decentralized and i would say that encrypted messaging is kind of a corollary to that second innovation and as much as now people are like more effortlessly like signal is a lot easier to use than pgp for example they're more easily able to practice privacy when it comes to having private messages globally um these are all good things and we need to keep pushing and i think money is like honestly maybe the most important piece and that's why i spent so much time thinking about bitcoin okay so politics information money yes let's talk about money what is money and why is it important to think about in the context of human rights i have witnessed money be peripheralized take it has taken a back seat in the human rights conversation the idea of currency who makes the money who makes the rules who issues it who sets the interest rates all these things it is not on the menu of human rights activists if you just do like a systematic study of like the human rights discourse over the last several decades money is not there it's also not really taught in schools like children don't really learn about money where does it come from it's it's kind of hidden from from our from a lot of our discourse um only really when i got into bitcoin did i start learning more about money um i spent 10 years at the human rights foundation and we we did all kinds of programs around the world we convened oslo freedom forums in different places and i got to meet hundreds of dissidents and very rarely did they ever speak about currency or bank accounts or moving money from one place to another but when i started asking them they always had amazing stories about money always i mean my friend ivan muire who started the this flag movement in zimbabwe which ended up toppling robert mugabe when i asked him to come to san francisco to give a talk about hyperinflation which he lived through he said no one's ever asked me to do that before but i'll come and he came this was about three years ago and the first thing he did when he got on the stage is he opened up a shirt and he brought out a necklace that had the 1980 zimbabwean dollar on it and he said we in the activist community wear this as a symbol of where our country used to be because the zimbabwean dollar used to be worth two british pounds and then of course over the next two and a half decades of economic mismanagement and corruption by mugabe it got inflated out of existence right you've seen those like hundred trillion dollar zimbabwean notes um so he had to live through that which was terrible and crushing but he you know is an expert on money if you actually talk to human rights activists about money they know a lot about money they're just not usually asked to talk about it so you know for me um money you know when i study money or look at money it's really about control you know who who's creating it and how much does the population know about the creation of that money and when it comes to bitcoin it's really the people's money like there is no shadowy force in charge of it we all know the rules we all know how it's going to get minted and how it's going to get printed and you know that information is out there for everybody to see and there's no like special group of rules for one group of people or another group you know a billionaire and a refugee are the same in the eyes of the protocol this is a rather revolutionary concept and in the same way that democracy allowed us to decentralize politics and have checks and balances and in the same way that the internet is this culmination of technologies that allowed us to decentralize information access to and control over it bitcoin you know decentralizes money i mean no longer again is there one group of people who can just change it arbitrarily we're all in the same playing field and i think that is a tremendous innovation you know from one perspective money and inflation hyperinflation is a kind of symptom of corruption as opposed to the core of the corruption and at this at the flip side in terms of resisting the corruption resisting the abuse of human rights it's interesting to think that fighting inflation or funny uh fighting the mismanagement of the money supply uh is a way to fight back authoritarianism or to fight authoritarianism and that's an interesting concept that i think was introduced to me by just plugging myself in intellectually into the bitcoin community but also just cryptocurrency in general it's it's to like it's not that money is a symptom you know money is a tool to fight back too absolutely so in in what way can bitcoin be used to um to fight authoritarianism not just in the united states but all of those 53 percent that you're referring to what how can bitcoin help so we talked about authoritarianism we talked about the surveillance state to me bitcoin has two kind of key mechanisms through which it can help us number one uh it's a sovereign savings account it's debasement proof meaning the government cannot print more whenever they want this is very very different from fiat currency which by its very name its very nature can be issued on sort of demand right by the rulers and while i live in a country where the rulers do a reasonable job of managing the money most people aren't so lucky so only 13 percent of humans in the world live in a country that's a liberal democracy with property rights and has what we call a reserve currency meaning a currency so stable and desirable that other countries save in it at the central bank level right you basically have the us the uk australia switzerland the euro and canada i mean those are like reserve currencies and these are liberal democracies where people have reasonable guarantees over property rights everybody else either lives under like a weaker currency or an authoritarian regime that's 87 of the world's population almost 7 billion people so for them a sovereign savings account that's permissionless meaning you don't have to have id to use it is a big big deal and a lot of people talk about zimbabwe or venezuela as some like isolated cases oh well you know hyperinflation only happens in in those two countries um i actually did some research into this and there's about one point uh over you know close to 1.3 billion people who live under double or triple digit inflation this is not an isolated instance we're talking huge countries nigeria 200 million people 15 inflation turkey 15 insulation for 100 million people argentina 40 inflation for a country 45 million people um so you can go down the list there's about 35 countries where like people's earnings their wages um are literally disappearing in front of their eyes over a matter of weeks or months against things like the dollar gold real estate right so this is a huge issue it absolutely is a human rights issue for me i mean when it comes to your time and energy having control over that or having it stolen from you i think this is pretty clear and bitcoin is like an immediate uh low-cost easily accessible solution for people and i've learned this not from my own assumptions but by talking to people by interviewing dozens of people whether it's in sudan which currently has triple digit inflation um or people who've escaped from syria who have used bitcoin to get their wealth out of the country and then also to make payments back to people inside um or venezuela or elsewhere it's very very powerful i think some very small percentage of people who have used have owned bitcoins was something like one percent right of the world whatever whatever the number is a small call it two percent for the purposes of our okay about a little under 200 million people wow yeah at most right now so if we look at zimbabwe sudan if we look at small percentages of people do you think the technology's mature enough because it's not just about the idea it's also about the implementation of it like you know bitcoin for the most part requires access to to the internet yeah and what do you think about accessibility of this technology now as a method of activism in the worst parts of the world we often think like all the conversations we've had about bitcoin is essentially middle class like wealthy people relative to the world they're kind of talking sort of investment and high concept ideas then there's also the people in the world who are suffering who are living through hyperinflation they may not have a computer or access to the internet like what how do you think bitcoin can help there yeah so again we have one clear use case which is a sovereign savings account that you can control right the other use case is an unstoppable payments network this is very important for people who live behind for example sanctions like the us like basically um weaponizes the dollar and it like sanctions different countries and instead of sanctioning like a handful of rulers for example which i would support this is like a magnitsky or smart sanctions sometimes we'll just say we're just going to shut off this whole country so the people suffer cuba or iran are good examples average people suffer right so people in those two countries i just mentioned cuba iran or even palestine which is also sort of like blockaded by the israelis so you have cuba iran palestine are three good examples where people inside all three of those countries now are using bitcoin to do commerce do their business send money back enforcement sanction resistant sanctions resistant it does not get stopped by sanctions right um and also it's again remittances are extortionate i mean the average remittance you know costs uh has a high fee takes several days if your family is in ghana or something like that or nigeria and you live in the united states it can take time to use western union um sometimes you know oh it gets paused it gets lost there's issues you have to deal with customer service screw that i mean you know if the person has a cell phone which increasingly is the case i mean by the end of next year uh more than five or six billion people depending on different estimates will have smartphones basically by the end of 2022 uh we're talking like the vast majority of humans will have access to smartphones they can all have sovereign bitcoin wallets and there's even ways to access bitcoin without the internet um but i mean we can get into that there's like hardware wallets and so on what do you mean by sovereign uh bitcoin wallet you know most users today are using bitcoin in a in a custodial manner so this is kind of like having a bank account um where you have a deposit uh account at a bank right so you have a claim right you go to the bank and they have some of your money and you take it out right with an atm so uh what i would call uh non-custodial bitcoin use would be similar to withdrawing cash from an atm you have it it's a bear instrument okay so when i it's what's called the bearer instrument i know i'm so apologize i'm outside this community just sounds
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