 My question is what if you as a any you ban exchanges like a gambling sites and Period schemes similar like China. So, what is the solution of that? Thank you That's a that's a great question what is the solution to pyramid schemes and The various Ponzi schemes that are occurring on a daily basis throughout this entire ecosystem of related crypto currencies First of all, it's naive to think that pyramid schemes only happen in Cryptocurrencies or on regulated markets or even that regulation stops pyramid schemes The word Ponzi comes from a fund created by George Ponzi in What was then a regulated market not as regulated as today, but a regulated market? If you get mad off That's because you were rich enough to be able to buy into the fund that was a Ponzi scheme for the rich in a Thoroughly regulated market and in fact ended up being one of the few people who went to jail because he committed the cardinal mistake Of stealing from the rich do not do that You can defraud a million people out of their mortgages, but do not steal from the rich because then you might actually end up in jail Probably a very nice jail You know not the kind of jail that you'd send someone for smoking a joint But How do we deal with? Pyramid schemes, how do we deal with Ponzi's they happen and they will continue to happen and they'll happen in regulated markets And on regulated markets and they'll happen more in unregulated markets and the reason they happen more in unregulated markets is Is not because the regulators are stopping Ponzi schemes But because they're restricting access to entrance on both sides of the market enough That it's very difficult to generate the type of liquidity needed for Ponzi schemes I mean you can list Herbalife on the stock exchange. There's no one's touching that But if you can appeal to a worldwide audience of investors Then you can really accelerate your pyramid scheme, right and as a result. That's exactly what's happening There's only one way to stop Investors for making stupid mistakes They have to first make stupid mistakes and lose money and Be more cautious and make more stupid mistakes and lose money and be more cautious You cannot teach someone who is making a return They've never seen in their life that the reason they're making a return that they've never seen in their life from a website That says guaranteed profits 10% a week is because they're sitting on the upper levels of a pyramid that will surely At some point collapse leaving 90% of the people with nothing you cannot convince them How do I know this? Because I try every day If I call out a scam on Twitter, I am hailed as a hero No, I'm not I Get viciously attacked by every participant in that pyramid scheme. How dare you side with the banks? I thought you were one of the good guys. How dare you call? Insert latest Ponzi here a scam people used to say Bitcoin is a scam. When did you start taking money from the banks? People are extremely resistant to learn that lesson and they will not learn it if you tell them what the lesson is They will only learn it Experientially experiential learning it's the latest in education and the way that works with investors is they have to lose money Why is it that? Americans are less susceptible for example To pyramid schemes than your average Chinese investor Be careful how you answer that question The reason is really simple It's because Americans have been investing in pyramid schemes since the early 1900s and They get burned again and again and again and this lesson starts getting passed down generationally So the first time you come back from school and I remember this day Where my fellow school members were playing a game? called Egyptian pyramid Where they drew on the blackboard a big triangle and they said you're here recruit two people each below you and take your lunch money and Give half of it to the person above you and then you recruit two people and they recruit two people and I looked at that and I thought this is amazing We could all make so much money. In fact half my friends are already buying lunch Like their kings And I went home and I told my dad About this amazing you think that I discovered at school what they were teaching us right? Not the teachers, but everybody else the Egyptian pyramid and He sat me down and explained to me why it's a scam And what happens when it ends and how many of those kids are gonna get into very serious trouble when the pyramid collapses? why because he'd been scammed with a pyramid in his youth and His father had been scammed with a pyramid in his youth and so we learn and We tell our children and the only way to learn that mistake is to lose money the reason investors are more sophisticated in the United States for example or in many Western nations is because they've had a Hundred years of practice nothing else. There's nothing inherently better about the regulatory system In fact arguably the Chinese regulatory system is far more effective They actually shoot bankers and then they build their family for the bullet They do they execute hundreds of them now that's maybe a regulatory system I could get behind. No, okay never mind Sorry for a moment there. I forgot. I'm a pacifist, but anyway The point is you cannot teach these skills unless you use experience so The biggest mistake you can make is teach investors that they do not need to make smart choices themselves That if they make bad choices, they will get bailed out that if They allow someone else to vet authorize rate value the investment if they outsource The decision-making if they outsource the risk to someone else Everything's gonna be okay, and of course everything is not going to be okay because giving that power to someone else Immediately introduces corruption So then the people who are rating vetting authorizing and Deciding which investments are safe are the people you need to corrupt in order to introduce your pyramid scheme They also are not infallible in fact They cannot operate at the speed of the market because centralized decision-making does not scale markets do What you need to do instead is tell investors Kavya temp tour By are beware There are scams out there. We will not catch them until they've done enormous damage. You will lose your money. Be careful The stock market is a pyramid scheme The bond market is a pyramid scheme the automobile loan market is a pyramid scheme The student loan market is one of the biggest pyramid schemes. We've ever built and all of them are going to crash As are many of the altcoins and ICOs and The only way to help investors is to let them make that mistake take full Responsibility for that mistake and lose all of the money that they put in Yes punish the people who did it afterwards, but you can't save people from their own stupidity And when you try you make them stupider