The Rise of Bitcoin and Other Stupid Meme Currencies: The Daily Show

Is this some fake (bleep) some (bleep) nerds made up on
the Internet to steal our money or is it the future of finance? There is no way all these
people buying cryptocurrency have any idea what the hell
they're investing in. And it's not just Bitcoin. Ethereum,
the number two cryptocurrency, has risen 5,000%
since the start of this year. Why? If you imagine Bitcoin
as being a gold coin, uh, Ethereum is a coin
that has a magic spell in it. What the hell does that mean? I spoke with one of the founders
of Ethereum, Joe Lubin, to find out. First question, what is it? What is it? Ether, the cryptocurrency
that lives on the decentralized
Ethereum platform, it's actually a much more
programmable cryptocurrency -than Bitcoin.
-That doesn't mean anything.

What is it? We created a platform
for decentralized applications. -Um… -Does everyone
in cryptocurrency talk like you? -Pretty much. Yes.
-Is it just everyone just going, "Decentralized… dark web…
and drugs online"? -Exactly. -Does cryptocurrency
make you feel angry and confused? Well, it should. To make it easier
to understand, we ripped off The Big Short
and asked Margot Robbie to explain it in a bubble bath, but she said no. Cryptocurrencies are transparent
and decentralized. When two strangers exchange
money over the Internet, it requires a middleman,
like PayPal or a bank, who takes a percentage
of the transaction.

And that transaction
is vulnerable for hacking. Cryptocurrencies are recorded in a public ledger
called the blockchain. So it's impossible to cheat. They actually solve a lot of
problems with exchanging money in a global digital world. Now get the (bleep) out of here!
I'm trying to take a bath. But, still, is that worth
a bajillion dollars? Why do so many suckers
on the Internet– sorry, I mean people–
believe fake money has value? Ether's real.
It's based on faith in the Ethereum blockchain. When you get enough people
believing in cryptocurrency, then you can snowball
into, uh, something that a society
actually deems valuable, like the U.S. dollar. Whoa, whoa, whoa, what do
you mean, the U.S. dollar? The U.S. dollar is based
on faith in the system. So the only thing backing
this money is belief in the competency
of the U.S.

Government. -Unfortunately, that's true.
-Damn! CHIENG: So not only is
cryptocurrency fake, all money is fake. Wake up, Wall Street! You know money isn't real,
right? All this stuff is all fake. But Wall Street doesn't care
if money is real, as long
as they're making lots of it. They've been pumping millions
into the Bitcoin and Ethereum, driving the creation
of thousands of new cryptocurrencies. But how low is the bar
for entry? But let me get this straight. You took Bitcoin, and you just
changed the font to Comic Sans? And we put a dog on it. CHIENG:
This was the guy to talk to. So, tell me about the genesis
of Doggy Coin. Well, firstly, it's DogeCoin. (laughs)
But, uh, I created… Well, why is it "Doge"? It's actually based on a meme. Well, it's not "Dog-E-Coin"? -A lot of people…

-E coin?
Electronic coin. Dog-E-Coin. Oh, that's pretty smart,
actually. CHIENG: It's not.
But guess what? This stupid meme currency is
worth almost $400 million. So why does its creator have some problems
with cryptocurrency? When you see price charts
go up and to the right exponentially, ultimately,
it can be a sign of a bubble. Yeah, bubbles are great.
What are you talking about? -I love bubbles. -People are
gonna lose a bunch of money. CHIENG: And sure, cryptocurrency
might destroy the planet through climate change and supporting rogue
nuclear states, but this is America! So I decided
to make my own cryptocurrency. But that has
to be an incredibly complex…

Done. That was easy. I did it. It literally takes
ten minutes to go on a Web site
and make your own coin. Trying to make it rain
Chieng Coin and kickstart the financial revolution. Do you accept, uh, Chieng Coin? Chieng Coin's like Bitcoin. It's disrupting global
financial systems… -Uh…
-…using Blockchain technology? No? I'll send you money
over the Internet. I'm going to demonstrate. So, -imagine if I send you this,
right? -Mm-hmm. No, no, but digitally. -(man mutters)
-No, no. Give… No, give me back my five. How are people
not getting this? No, I was…

I'm paying you.
I'm paying you in Chieng Coin. Get the (bleep) out of my cab!
Out of my cab! -My cab! My cab!
-Remember this moment! Remember this moment
when you had a chance to jump on Chieng Coin,
and you didn't, all right? His loss. Invest in Chieng Coin! Just don't ask me how it works..

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