gistfile1.txt

1
00:00:00,000 --> 00:00:32,000
Past Headlines...

2
00:00:32,100 --> 00:00:35,200
Hello Audience, thank you for watching Economics Half Hour.
I am Ma Hongtao.

3
00:00:35,300 --> 00:00:40,000
Recently, these online, virtual currencies named "Bitcoins" slowly creeped into the mainstream's view.

4
00:00:40,000 --> 00:00:47,318
In addition, domestic media sources broadcasted another bit that brought it closer to the hearts of Chinese people.

5
00:00:47,418 --> 00:00:55,040
According to these reports, after the Sichuan Earthquake, Bitcoin was used as donations entered the account of the relief fund.

6
00:00:55,140 --> 00:00:57,140
So what is Bitcoin?

7
00:00:57,240 --> 00:01:00,840
So where did bitcoin come from, and what can it be used for?

8
00:01:01,640 --> 00:01:03,140
This enigmatic currency is what we will explore today.

9
00:01:04,725 --> 00:01:07,781
Today, just like any other day,

10
00:01:07,881 --> 00:01:12,486
Duai starts the day by turning on his computer to go to a bitcoin mining site.

11
00:01:12,850 --> 00:01:15,093
8484..

12
00:01:14,240 --> 00:01:17,493
Every minute the numbers are moving. It's exciting.

13
00:01:17,909 --> 00:01:19,409
I am making money, I am making money.

14
00:01:20,303 --> 00:01:22,928
A short couple hours, Duai didn't do anything.

15
00:01:23,028 --> 00:01:26,636
The computer mined 0.85 BTC.

16
00:01:27,594 --> 00:01:29,736
He then opens China's largest exchange website.

17
00:01:29,829 --> 00:01:33,048
Today's exchange rates are 800 RMB/BTC.

18
00:01:33,163 --> 00:01:37,964
This means, Duai made 700 RMB over the last couple hours.

19
00:01:38,789 --> 00:01:40,951
Sung is also a Bitcoin enthusiast.

20
00:01:41,218 --> 00:01:44,217
He and his comrades (lol) often talk about the bitcoin market.

21
00:01:44,362 --> 00:01:45,957
Did you buy any?

22
00:01:46,581 --> 00:01:49,545
I bought a little bit a while ago at 790.

23
00:01:49,671 --> 00:01:52,810
Got in at the right time.

24
00:01:52,810 --> 00:01:57,051
Bitcoin, which has been the obsession of gamers, was born 4 years ago.

25
00:01:57,418 --> 00:01:59,836
In 2008, someone using the pseudonym Satoshi Nakamoto

26
00:02:00,571 --> 00:02:04,135
posted a research paper on a secretive cryptography mailing list

27
00:02:03,130 --> 00:02:06,762
that detailed his thoughts regarding Bitcoin.

28
00:02:06,762 --> 00:02:11,184
In 2009, he helped this organization establish an open source project.

29
00:02:11,637 --> 00:02:13,814
officially announcing the birth of bitcoin.

30
00:02:13,623 --> 00:02:18,339
He's never shown his face, and later retired from management

31
00:02:18,666 --> 00:02:24,938
So whether this guy is a single person, or a group of people, on one knows.

32
00:02:24,938 --> 00:02:27,541
Bitcoin does not rely on any central distribution agency

33
00:02:28,096 --> 00:02:31,063
but rather uses a peer-to-peer, distributed storage

34
00:02:31,163 --> 00:02:33,182
to assist with the transfer of currency.

35
00:02:33,188 --> 00:02:38,024
And it uses cryptography to secure every step and reliability of the currency.

36
00:02:37,988 --> 00:02:41,165
Users can use computers, following the pre-set rules,

37
00:02:42,676 --> 00:02:44,185
use large number of calculations to "mine" bitcoins.

38
00:02:45,973 --> 00:02:47,978
During "mining," the computer searches for 64 digit numbers.

39
00:02:48,078 --> 00:02:53,471
Using repeated cryptographic operations, in a fair race with other miners, it provides the network with the data it requires.

40
00:02:53,480 --> 00:03:00,126
If the miner's computer successfully solves the correct number, he is rewarded with with 25 BTC.

41
00:03:00,226 --> 00:03:07,171
Because the bitcoin system operates in a decentralized network, only 25 BTC are rewarded every 10 minutes.

42
00:03:07,271 --> 00:03:12,218
Meanwhile, users can instead trade online to obtain bitcoins.

43
00:03:12,318 --> 00:03:15,438
This machine room is Zhaiwenjie's mining location.

44
00:03:15,538 --> 00:03:20,490
All of these converted machines are specialized to mine Bitcoin.

45
00:03:20,590 --> 00:03:26,549
These graphics cards calculate day and night, the temperature inside the room is noticibly higher than outside.

46
00:03:26,649 --> 00:03:30,005
It's so hot it can almost cook eggs.

47
00:03:30,105 --> 00:03:33,461
It does indeed seem hotter here.

48
00:03:33,561 --> 00:03:36,064
How about the power consumption?

49
00:03:36,164 --> 00:03:41,084
Power costs about 60 RMB (~$10) a day.

50
00:03:41,184 --> 00:03:45,194
These are burnt out cards.

51
00:03:45,194 --> 00:03:47,468
How many have burned out?

52
00:03:47,568 --> 00:03:48,982
About... 10.

53
00:03:49,082 --> 00:03:52,917
Sunminjie’s machines are also haven't stop running.

54
00:03:52,808 --> 00:03:56,757
Although the temperature is high when sitting next to the computer, he is very happy.

55
00:03:56,857 --> 00:04:04,940
Mining is repeatedly running a very complicated encryption and decryption algorithm.

56
00:04:05,040 --> 00:04:09,862
Then it will be equally distribute to the people who connected to the network.

57
00:04:09,962 --> 00:04:15,002
Those who contribute the most (hashing power) will recieve the most.

58
00:04:15,102 --> 00:04:21,504
Although Bitcoin is a virtual currency that can’t be seen or touched, it cannot be ignored.

59
00:04:21,604 --> 00:04:23,104
On 23th April, “One” Foundation announced, had received the Intention to donate of 50 Bitcoins.

60
00:04:23,204 --> 00:04:29,762
This is the first time Bitcoin was used as donation in China.

61
00:04:29,862 --> 00:04:32,782
After a few days, the sum increased to 230 BTC.

62
00:04:32,882 --> 00:04:38,101
In the small remote European country, Cyprus, Bitcoins also showed its great promise.

63
00:04:38,201 --> 00:04:42,026
This year, Cyprus government collected taxes from bank deposits.

64
00:04:42,126 --> 00:04:46,762
And people suddenly discovered that the unregulated virtual currency Bitcoin can evade taxes.

65
00:04:46,862 --> 00:04:51,126
and exchange with US dollar and many other currency, thus decreasing their "Loss of wealth."

66
00:04:51,226 --> 00:04:55,381
Bitcoin ATMs even appeared in Cyprus.

67
00:04:55,481 --> 00:04:59,648
So what is Bitcoin in the eyes of the users?