The World Economic Forum's Prediction Just Came True! (PREPARE NOW) — Transcript

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1. 0:00Are we on the verge of a cyber pandemic?
2. 0:02Overnight, grocery store freezers in six
3. 0:04European countries were hacked and
4. 0:06cranked up to 50°C. And the Pentagon now
5. 0:09says freezer failures at six US military
6. 0:11bases were a potential cyber attack,
7. 0:13too. Last week, the biggest exchange
8. 0:15hack in crypto history hit Binance. $6.3
9. 0:17billion gone minutes. Google and Intel
10. 0:21had their worst [music] days in decades.
11. 0:23The Fed is talking rate hikes in the
12. 0:24middle of a war. America votes tomorrow,
13. 0:27and the governments everywhere are
14. 0:28telling people to stock up on food and
15. 0:30water. The early 2020 vibes are
16. 0:32increasing. Today, I'll show you why the
17. 0:34biggest exchange hack in history makes
18. 0:36the case for Bitcoin even stronger. And
19. 0:38why, with AI breaking into everything,
20. 0:40Bitcoin might actually be the safest
21. 0:42place for your money. This is Truth
22. 0:43Block. I'm Hurley. Let's mine truth.
23. 0:52All right, lots to cover today. But
24. 0:54before we get into it, if you're not
25. 0:55subscribed to Simply Bitcoin yet, do it
26. 0:57now. The story is changing by the day,
27. 1:00and right here is the best place to stay
28. 1:01on top of it. Okay, let's start with the
29. 1:03freezer hacks. Overnight, grocery stores
30. 1:06in six European countries, including
31. 1:08Belgium, Sweden, and Ireland, found
32. 1:11their freezers pushed as high as 50°C.
33. 1:13For you Americans, that's over 120°F.
34. 1:16The BBC is calling it a suspected cyber
35. 1:18attack. And it looks a lot like France 3
36. 1:20weeks ago, when hackers switched the
37. 1:22freezers at hundreds of French
38. 1:23supermarkets into defrost mode
39. 1:26overnight. Staff walked into hot air
40. 1:28blowing out of the freezers, food had to
41. 1:29be thrown out, and some stores caught
42. 1:31fire. Then last Thursday, Reuters
43. 1:34reported the Pentagon is investigating
44. 1:35freezer failures at six US military
45. 1:38bases as a suspected cyber attack. So,
46. 1:40how exactly do you hack a freezer? Well,
47. 1:42apparently, these cold aisles run on
48. 1:44control panels connected to the
49. 1:45internet. And researchers say a lot of
50. 1:47them were running on weak passwords. So,
51. 1:50whoever did this didn't have to break
52. 1:51down a door, they just had to log in.
53. 1:54That's the unsettling part. Because for
54. 1:56weeks now, AI has been finding open
55. 1:57doors everywhere. Like we covered in
56. 1:59this episode last week. Now, nobody has
57. 2:01tied AI to the freezers yet, but the
58. 2:03night Binance got hit, Elon Musk summed
59. 2:06up the mood in three words.
60. 2:08Every day is zero day, and governments
61. 2:10are acting like they know it. More than
62. 2:1230 countries now are telling their
63. 2:13citizens to stockpile food, water, and
64. 2:16supplies at home. If this is giving you
65. 2:18eerie early 2020 vibes, you're not
66. 2:20alone. In July of 2020, right in the
67. 2:22middle of the first pandemic, Klaus
68. 2:24Schwab of the World Economic Forum
69. 2:26opened a cyberattack drill called Cyber
70. 2:28Polygon with this video warning.
71. 2:31>> Pay insufficient attention
72. 2:34to the frightening scenario of a
73. 2:37comprehensive cyberattack, which would
74. 2:39bring to a complete halt
75. 2:42to the power supply, transportation,
76. 2:46hospital services, our society as a
77. 2:49whole.
78. 2:51The COVID-19 crisis would be seen in
79. 2:55this respect as a small disturbance
80. 2:59in comparison to a major cyberattack.
81. 3:02[music]
82. 3:05>> Brendan Quittem went on BTC Sessions
83. 3:07last week to talk about the fourth
84. 3:08turning. The theory that history runs in
85. 3:11roughly 80-year cycles that each end in
86. 3:13a crisis. And where he thinks this one
87. 3:15is headed.
88. 3:16>> So, unfortunately, all previous fourth
89. 3:18turnings, going back four or five
90. 3:21cycles, I think the authors nailed down,
91. 3:22they all end up in war.
92. 3:24And so, we had World War II, we had the
93. 3:27Civil War, we had the Revolutionary War,
94. 3:29and then we had some other thing prior,
95. 3:31I don't remember the details. And so,
96. 3:33100% of fourth turnings ended in total
97. 3:35war, and also all total wars in American
98. 3:39history also happened during a fourth
99. 3:40turning. So, it's a one-to-one
100. 3:42correlation. Does that mean I'm saying
101. 3:44for sure total war? No.
102. 3:47It It what it means to me is we need a
103. 3:49catalyst sufficiently large enough to
104. 3:52get the people to do some crazy stuff
105. 3:54and rebuild the society, essentially.
106. 3:56And so, if I had to bet, would I say
107. 3:59total war is coming? Yes. Um but I don't
108. 4:02think it's going to be like tanks on the
109. 4:04ground, World War II type thing.
110. 4:07In my opinion, it will be something
111. 4:08closer to an economic, technological
112. 4:11cold war,
113. 4:12which I honestly think we're in right
114. 4:14now.
115. 4:15This is This would be defined by
116. 4:17plausible deniability. And so, it's not
117. 4:19We're not bombing China and China's
118. 4:21bombing us. It would be like trade war,
119. 4:24economic backstabbing,
120. 4:26blow up energy resources, zero days and
121. 4:29assets, and sort of just like sabotage
122. 4:32each other as the world jockey's for
123. 4:34who's going to be
124. 4:36a global superpower in the next era.
125. 4:38>> If Qassem is right, these freezer and
126. 4:40infrastructure hacks could be what that
127. 4:42kind of war could look like. Of course,
128. 4:44there is another way to read it. Maybe
129. 4:46it's criminals with a cheap tool and a
130. 4:47list of default passwords.
131. 4:49Maybe it's a hostile country testing how
132. 4:51fast the West's food supply cracks.
133. 4:53Nobody knows yet. But my read is that
134. 4:55something is definitely being seeded
135. 4:57right now around AI and cyberattacks.
136. 5:00And the right response is to get ready,
137. 5:02but calmly. And for a Bitcoiner, being
138. 5:04ready also means getting dollars when
139. 5:06life happens without selling the Bitcoin
140. 5:08you're saving for the next decade. And
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143. 5:14instead of selling it. And the funds
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155. 5:38Now, let's talk about the hack that hit
156. 5:40closest to home. Last Thursday, an
157. 5:42attacker drained about $6.3 billion from
158. 5:44Binance's hot wallets. And the analysts
159. 5:47at Elliptic call it almost certainly the
160. 5:48largest known theft of any kind ever.
161. 5:51Binance says it started with one
162. 5:52engineer's compromised laptop, and they
163. 5:54plan to cover every loss. Now, there are
164. 5:57two big lessons here. The first is the
165. 5:59freeze.
166. 6:00Within hours, Tether and Circle froze
167. 6:02about $2.4 billion dollars their
168. 6:04stablecoins. That's great when it's a
169. 6:06thief, but it's important to remember
170. 6:08that a dollar that can be frozen for a
171. 6:09thief can be frozen for anyone
172. 6:12at the push of a button.
173. 6:14The roughly 18,000 Bitcoin that got
174. 6:16taken couldn't be frozen by anybody.
175. 6:18And that's a feature, not a bug. It's
176. 6:20frustrating when it's a thief that has
177. 6:22it, but it's the exact same property
178. 6:23that protects your Bitcoin from
179. 6:25censorship when you hold the keys. And
180. 6:27that brings us to the second lesson,
181. 6:29which is custody. Bitcoin didn't get
182. 6:31hacked, an exchange did. And the Bitcoin
183. 6:33network kept producing blocks the whole
184. 6:35time. But if your coins were sitting in
185. 6:37that Binance hot wallet, your security
186. 6:39came down to one engineer's laptop. That
187. 6:41distinction is literally the entire
188. 6:43point of Bitcoin. And look at what
189. 6:45Bitcoin is currently absorbing.
190. 6:47Rate hikes, sticky inflation, a war with
191. 6:50Iran, a big tech sell-off including
192. 6:52Google's worst day ever, and Intel's
193. 6:55worst day since 1974, a midterm election
194. 6:57tomorrow, and the biggest exchange hack
195. 7:00in history. All of this and it just
196. 7:02closed its seventh straight week above
197. 7:03the 50-week moving average, the line it
198. 7:05spent 44 weeks stuck under before
199. 7:07September. It's about a third above its
200. 7:09June low, and over the same week gold
201. 7:11actually fell more than Bitcoin did.
202. 7:13James Lavish put the hack in
203. 7:15perspective. Mount Gox in 2014 was about
204. 7:1830 days of Bitcoin's trading volume.
205. 7:20Binance was about a fifth of a single
206. 7:22day's trading volume. And that just
207. 7:24shows you how much Bitcoin has grown and
208. 7:25matured in the last decade. Jordi Visser
209. 7:28explained why Bitcoin barely flinched
210. 7:30following the hack on Anthony
211. 7:31Pompliano's show on Saturday.
212. 7:34>> So, let's put two things in a context.
213. 7:36Number one, we had Google down 13%.
214. 7:38Okay? Google.
215. 7:40Much bigger than Bitcoin.
216. 7:43Not not not as much bigger, but it is
217. 7:45bigger.
218. 7:46Um I only bring that up because when you
219. 7:48can have Intel down 25%, when you can
220. 7:51have Google down 13 14%.
221. 7:54And especially Google,
222. 7:55multi-trillion-dollar company, I I think
223. 7:58the move in Bitcoin when you normalize
224. 7:59it for what's happening in the biggest
225. 8:01assets in the world, let's go to the
226. 8:03flip side. I mean, Eli Lilly's up 10% in
227. 8:062 days. That's a trillion dollar
228. 8:08company. So, I I think people are just
229. 8:10going to have to get used to the fact
230. 8:12that the reason that Bitcoin isn't
231. 8:13moving as much as it did before is cuz
232. 8:15the volatility is just much lower and
233. 8:17and it's been lower than than than AI
234. 8:20names all year.
235. 8:21We need things to happen for the system
236. 8:24to be more trusted. My main thing now is
237. 8:27the banks are involved with crypto.
238. 8:29Like, they're not turning around.
239. 8:32They're involved in tokenization.
240. 8:33They're involved in supporting Bitcoin.
241. 8:35It was a very different world during the
242. 8:37hackings when Jamie Dimon was saying
243. 8:39this was garbage and you'd never be
244. 8:40involved.
245. 8:41They all have skin in the game now.
246. 8:43They're promoting it to their customers.
247. 8:45That means that they care about the
248. 8:47security and they care to know what
249. 8:48happened.
250. 8:49That's the way that in the long term
251. 8:52issues like this become bullish because
252. 8:53we have there has to be a plan in place
253. 8:55to deal with these types of things and
254. 8:57make it clear. So, when you mention
255. 8:59the ETFs, you don't think BlackRock is
256. 9:02spending a lot of time on quantum and a
257. 9:04lot of time on these particular things?
258. 9:05Of course, they are. I heard that this
259. 9:07week at a lunch where someone had talked
260. 9:09to BlackRock and what are they going to
261. 9:10do in the event that you've got these
262. 9:12quantum companies doing conferences and
263. 9:15they're saying, "Yeah, we're going to be
264. 9:16able to
265. 9:17break into
266. 9:18Bitcoin by 2028." They're publicly out
267. 9:21there saying that now. I know they want
268. 9:23to raise capital
269. 9:24cuz they need a lot of capital to get to
270. 9:26the hardware necessary to do that. But
271. 9:28regardless, I think this speeds up
272. 9:30people thinking about it. And if there's
273. 9:32been one negative within side I think
274. 9:35crypto and let's say Bitcoin the last 4
275. 9:38years probably was um
276. 9:41more about recovery from what happened
277. 9:43in 2021, 2022 and not a lot of focus on
278. 9:47how do we deal with the security issues
279. 9:48going forward from quantum and AI. I
280. 9:50think issues like this actually speed up
281. 9:52the need for it and I think the fact
282. 9:53that the banks are involved and you've
283. 9:55got people with skin in the game that
284. 9:56actually have they have fiduciary
285. 9:58responsibilities. There's a big
286. 10:00difference between JP Morgan and
287. 10:01Binance, but when they're both involved
288. 10:02in the same area and they're kind of
289. 10:04promoting it from an investment
290. 10:06standpoint, I think everyone has to come
291. 10:07together. So, I'm going to take the side
292. 10:09that this is just a normal maturation
293. 10:10process of a new technology that's going
294. 10:12through the headaches and that these
295. 10:14things can't happen. So, we're going to
296. 10:15have to find other other ways to deal
297. 10:17with this.
298. 10:18>> In 2014, there was no BlackRock in
299. 10:19Bitcoin and no bank selling it to
300. 10:21customers. Now, the biggest names in
301. 10:23finance own it. So, every attack like
302. 10:25this pushes more money into securing
303. 10:27everything around Bitcoin. And here's
304. 10:29the cruel irony. A lot of people
305. 10:31watching AI break into freezers and
306. 10:32exchanges assume Bitcoin has to be next.
307. 10:35And a couple of well-known Silicon
308. 10:37Valley investors have been saying
309. 10:38exactly that. Natalie Brunell asked Lyn
310. 10:41Alden about this on Coin Stories last
311. 10:43week.
312. 10:43>> I think to to some of their credit, I
313. 10:45mean, there is new information out there
314. 10:46now. I mean, basically the the rate of
315. 10:48things getting hacked has obviously gone
316. 10:49up quite a bit because the cost of
317. 10:51hacking is now lower instead of having
318. 10:53to hire the world's best hacker or a
319. 10:55top-tier hacker,
320. 10:57uh we we you just kind of like how
321. 10:59any other thing that AI can do, uh
322. 11:02drastically reduce the cost. That's
323. 11:03unfortunately true for hacking as well.
324. 11:05Um so, a lot of things that might have
325. 11:07just gone over
326. 11:08like not not kind of seen are are being
327. 11:10attacked.
328. 11:11Uh
329. 11:12and you know, when you have like
330. 11:14irreversible transactions in a in a you
331. 11:16know, public network, I think it's it's
332. 11:18rational that people are a little bit
333. 11:21a little bit unnerved by by the hacking
334. 11:23that can happen.
335. 11:24Um
336. 11:25you know, I was asked before on our on
337. 11:26our recent podcast what I thought about
338. 11:28kind of the the broad crypto space and I
339. 11:30was like, well, I mean, the more complex
340. 11:31project you you have, the more I'd be
341. 11:33worried about it. I mean, the if
342. 11:34anything's going to hold up, it's
343. 11:35something, you know, like Bitcoin
344. 11:37because you're kind of purposely
345. 11:38reducing attack surfaces by keeping the
346. 11:40system simple. The further you go out on
347. 11:42that complexity spectrum, the more
348. 11:44attack surface there is, the more
349. 11:45nervous I'd be about it.
350. 11:47>> For years, people mocked Bitcoin for
351. 11:48moving slowly and refusing to rush into
352. 11:50new features.
353. 11:52Well, that decision looks incredibly
354. 11:53prescient now, doesn't it? Think about
355. 11:55what's actually getting broken into.
356. 11:57Passwords, control panels, and people
357. 12:00like an engineer with a laptop.
358. 12:02Bitcoin's lock is math that anyone can
359. 12:04check on code that's been picked apart
360. 12:06in public for 18 years. Satoshi's
361. 12:09roughly 1 million coins worth over 70
362. 12:11billion dollars haven't moved in more
363. 12:14than 15 years. That's the biggest bounty
364. 12:16on Earth and nobody has collected it. So
365. 12:19the weak spot is where your keys live.
366. 12:21James Lavishley where he thinks the
367. 12:23attacks land first on what Bitcoin did
368. 12:25the same day Binance got hit.
369. 12:27>> I I heard Lynn say this
370. 12:29in a snippet somewhere
371. 12:31and I think she's exactly right that
372. 12:34Lynn Alden for people who are listening
373. 12:36who don't know and she said AI threats
374. 12:39have basically leapfrogged quantum
375. 12:42um recently and to to any existing
376. 12:47protocol and and and system.
377. 12:50And so
378. 12:52it you're seeing it real time now where
379. 12:55JP Morgan and other banks are like oh
380. 12:57you can't have agents doing banking
381. 12:59business with you like that's just that
382. 13:01is not safe
383. 13:03because they're not they don't trust the
384. 13:05agents won't go in and and wreak havoc
385. 13:07and somehow get into the system and and
386. 13:09and uh
387. 13:11whether it's it's steal money or
388. 13:13whatever.
389. 13:14That would to me that would be the first
390. 13:15attack vector which is banks. I mean
391. 13:18people are going to want people's money.
392. 13:19They're not going
393. 13:20Bitcoin's much harder to uh
394. 13:23to steal. Like you have to you have to
395. 13:25somehow
396. 13:27socially engineer an attack which
397. 13:31is what
398. 13:33what basically happened with well cold
399. 13:36card is a different issue but with with
400. 13:38uh
401. 13:39um the ledgers right? They basically
402. 13:42they they got into the the distribution
403. 13:45>> supply chain.
404. 13:46>> Yeah the supply chain.
405. 13:47So um
406. 13:49but anyways
407. 13:51so I think I think that would be I'd be
408. 13:52much more worried about having a lot of
409. 13:54cash sitting in a bank than I would
410. 13:57having it on a bunch of cold wallets or
411. 14:00you know in in in Bitcoin somewhere you
412. 14:03know in a in a in a in a
413. 14:05an account that
414. 14:07is custodial account somewhere with with
415. 14:11multi-sig
416. 14:12um protection.
417. 14:14>> Banks and exchanges are the ultimate
418. 14:16honeypots.
419. 14:18One system, millions of accounts, and
420. 14:21one door to get through.
421. 14:22Proper self-custody takes that door
422. 14:24away. And with a good multi-sig setup,
423. 14:27an attacker would need two separate keys
424. 14:29in two separate places to move your
425. 14:30Bitcoin.
426. 14:31But self-custody only works if your
427. 14:33family can actually use it. For years, I
428. 14:35ran a complicated multi-sig setup. And
429. 14:38walking my wife through it honestly kept
430. 14:40me up at night.
431. 14:41Because I was never convinced she could
432. 14:42get access to our Bitcoin if I wasn't
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449. 15:16Okay, so let's zoom out. The real lesson
450. 15:18of the last week is about what's
451. 15:19actually safe.
452. 15:21AI is making it cheaper than ever to
453. 15:23break into anything with a login.
454. 15:25Freezer controls, bank accounts,
455. 15:27government websites, and exchange hot
456. 15:29wallets have logins. A lot of people who
457. 15:32don't understand how Bitcoin's
458. 15:33encryption works assume it's the most
459. 15:35vulnerable thing out there. That's
460. 15:37ironic because it's actually the least.
461. 15:39The freezer had a password.
462. 15:41Bitcoin has rules.
463. 15:43And the one real door left is custody,
464. 15:45which happens to be the one door you
465. 15:46control.
466. 15:47So, whatever is being seeded around AI
467. 15:49and a cyber pandemic, fear is a terrible
468. 15:52place to make decisions from. So, stop
469. 15:54the urge to doomscroll and go touch
470. 15:56grass. Get to know your neighbors. Focus
471. 15:59on what you can actually control in your
472. 16:01family and in your community. And of
473. 16:03course, it doesn't hurt to be prepared.
474. 16:05It's probably smart to keep water, food,
475. 16:07and some cash on hand for the first few
476. 16:08days of anything. For the long run, save
477. 16:11in money that nobody can print or
478. 16:13freeze.
479. 16:14And hold your own keys properly.
480. 16:16So, stock the pantry for a week and save
481. 16:19in Bitcoin for the next 10 plus years.
482. 16:21So, what do you think? Is a cyber
483. 16:23pandemic really coming? Or is the fear
484. 16:25being oversold? And after a week like
485. 16:27this, who do you trust most with your
486. 16:28money? A bank, an exchange, or your own
487. 16:32keys? Let me know in the comments below.
488. 16:35If you got value out of this, don't
489. 16:36forget to hit that like button and send
490. 16:38it to a friend who's been panic
491. 16:39prepping.
492. 16:40And subscribe to Simply Bitcoin for more
493. 16:41analysis like this.
494. 16:43I'm Hurley. This is Truth Block with
495. 16:44Simply Bitcoin. As always, thanks for
496. 16:46hanging out with me and I'll see you on
497. 16:48Thursday.