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Hi everyone, my name is Michael Glasser, and you're here for high security and access control. Is that what everybody's here for? Really? Think so. Think so? Good. Everybody in my room? Great. I came here today to give a basic overview of high security locks and access control electronics, with the main idea that everyone here probably has a question about something they've seen.  And I've seen other lock-picking talks where they go into a lot of detail about the functional parts of locks. So I'm here for a general overview, because there's no way I can cover every lock out there. So if anyone has a question at any time, throw a hand in the air, I'll answer it. And if it's too technical, I'll tell you the ghost something. So let's get started. This is my ammo box. I mean, Navy stores are great. They really work well, too. Waterproof. First thing, if anyone went to the lock-picking talk, this would be, I wish I had a camera here, so they ever could see very much closer. Unfortunately they don't, so anyone who wants to look, go like this. And it'll work better. This is a basic cylinder. Everybody has one in the door somewhere, in their office, in their car, somewhere. There's a cylinder. The key goes in, it turns, everybody's happy. And if anyone went to the lock-picking talk before, they understand how pins ride up and down, and have shear lines. And if anyone doesn't understand that, play along. Because going through details of that would take me 20 minutes to explain something very basic. Not to question anybody, but that's just not what I'm here for today. So that's a basic pin tumbler, just pins. Now I'm going to go into something a little bit more, more bigger. Okay. This is more bigger. Little, not so little. See, they're different. Now, this is a Folder-Adams pin tumbler cylinder. It's very large. If you look in the keyway, that's the part where the key goes in. If you look in the keyway, you can see there are ball bearings, because that way the key rolls in and out, it's also more pick-resistant, and a few other things I'm not going to go into details of. But there's a very specific purpose for this cylinder. Has anyone here ever seen this cylinder before? Well, where'd you end up if you have? Anybody? You have? What's it out of? What's it out of? Where did you see the cylinder? It's eight o'clock, isn't it? I hope you don't remember anybody else. What's it out of? Prison door. Very good. It's a prison door. This is a Folder-Adams detention cylinder. If any of you guys know what this is, except for him, stay away from my room. And that's what this is. This is what you go into many, many most. Most prisons in the United States will see something like this. You're probably not going to be able to get your hands on these unless you know somebody, because they're very much controlled so that people don't get information about them and don't play with them. If you can, we'll power to you, but it's really hard to get these. It just so happens I sell them, so it was easy to borrow one for a day. What else? This is a piece of brass. This is a Nabob cylinder. Nabob is an Israeli company. Have any of you ever heard of Multilock? Everybody say, yeah, I'll go with all those hands. Multilock uses a pin and pin system where on a normal cylinder you would have a pin with another pin on top of it, and when the shear line meets, it separates. In Multilock, you have a pin that's hollow with another pin inside of it so that there's actually two pins to go up and down.  They say it's pick-resistant. I know a guy would pick something like 30 seconds.  It takes me like five minutes. But most people cannot and probably will not be able to ever pick those. Nabob came out and said, hey, Multilock's pattern's up. Screw them. Let's make the same thing. So Nabob, the same exact thing as Multilock with different name on it. So if everyone comes across Nabob and they go, oh, this is new. This is great. No, it's not. It's Multilock from 10 years ago when the pattern ran down. So that's Nabob. We'll get a little more electronical after I just go through the basic cut-screwing locks out there. This is what's called an ASSA twin cylinder. Like, I really wish I had this camera right now. But anyway, this is what's called an ASSA twin cylinder. The way an ASSA twin works, now, ASSA is the name of the company, ASSA Abloy. It's the company that makes it. And a twin, because unlike a normal cylinder where it has one set of cuts, if you looked very closely at this, you would see actually a set of cuts on top and a set of cuts on the side.  It's that simple. Why? Because you have to pick the top and you have to pick the side. The side rather than being pinned to sit on top are pins that have a little finger that rides along the side of it. So it's very, very hard to pick. It's one of the hardest out there. I know guys who can do it, I personally can't. I've tried and have not been successful. It is pickable as they're all locks.  That's the ASSA twin. It's a very good lock. This is a fichet. If you can see the key from that direction, it's kind of funny looking. I actually got four sets of pins in there.   It's supposed to be super high security, so my answer is get a drill and you drill it. But we didn't hear that from me. It works. When you're going to break into somewhere, you're probably not going to pick the lock unless you work for the government. I'm sure somebody here works for the government and they say, yeah, burglars don't break in that way. Burglars break the window or they kick in the door.   A lock isn't going to keep somebody really determined out. I'm a volunteer fireman in New Jersey. And if I want to get into your door and my tools aren't working, I take my chainsaw and cut around the lock and I just open the door. So, yes, it can be done as hard as it might seem. Some people in the front are laughing. People are in the back aren't laughing. Tell me why. I must be doing something wrong. Come on. I'm a social person here. This is called Miwa. Miwa, if you look at the key, don't look like very much because it has magnets in the sides. Now, instead of physically moving the pins back and forth, they use magnetism, which I'm sure everybody knows positive, negative, you know, sucky-sucky kind of thing. Everybody knows it. You can zook and poof if you put it the other way. And it just uses it that if the magnet's in the right direction, it moves the pins to the right place. If they're in the right place, the lock will open. It's called Miwa. It's from Japan. They've actually just, Miwa America was just taken over by Miwa Japan again because they weren't doing too well at selling them. So you've probably never seen this. If you have, then no power to you. The keys are easily made. You just take a magnet and you pound it in here with a hammer. That's how you make a key, literally.  And then you do it with positive or negative. Some of them are positive, negative, or sideways because then you have the positive and one side negative and I guess you guys can figure that out. Read right head, blah, blah, blah. How pickable are they? If you can get a magnet, let's move it sideways. If you can get a magnet that small in there, very easily. I designed a device which I haven't had anybody engineer for me and any of you guys are real good micro engineers, call me. Where it would just simply be the same exact thing as a key with a couple of little read-teds to read the magnetism positive, negative, or sideways and then just go out and make my key with my little hammer and done. Beat it in 10 seconds. Or just invert the polarity and really quickly done. This is Sargent Standard Cylinder. Sargent's a good brand. Compared to Remind at work, but they're still a good brand.  If you flip the lock apart and forget to put the right tool in there, it kind of falls apart and you get a big hole in the middle.    Ah!  This is a concept type security lock. I have never seen these before except the way the friend shopped the other day.  He was like, I found this in the garage shelf for $5. So I bought it. It's just three sets of pin tumblers. The only reason the key has four is because it looks cooler. And it's sharp. You can stab somebody with this thing. It's really sharp. And it's just three sets of pin tumblers. This concept is generally known for making their Jimmy-proof locks. If you've ever been to New York, I don't know if they have them out here. I'm from that area. It looks like there's almost three teeth. When you close the door, there's another thing with three teeth. It goes clunk and a bolt goes down. That's a Jimmy-proof or a slam drop bolt or there's a whole bunch of names for them. I also happened to make this thing which I found. I thought it was really cool because I didn't have one. No, I do. And you don't. What's this? This is an old Corbin jumbo cylinder. If you look at a normal size cylinder, it's just a little bit bigger. There were multiple reasons for this. One, it gave you more Master King possibilities. If anyone knows about Master King, you're actually just adding more pins on top. It just makes life easier when you have more room to play with. So you have more combinations.  But don't ever mess up and don't drink before working with power tools.  But if anybody wants to buy me a drink while I'm up here, I'd be happy to take it. This is your Denny. Your Denny is another dimple key system much like the Multilock. But the Multilock has the pin-in-pin. This is just a standard dimple key. There's pins on top that, if you look at the key, it looks almost flat. They used to call them computer keys. They used to call them all kinds of things. It just, the pins are right on top of the key rather than being on the edge of the key. Very high security. Hard to pick. Impossible to pick. So you take one, then you cut all the depth. The deep is taking possibly go. And then you can impression it. If you know what impression is, real quick. Basically what happens is you take this key and you have different depths of the dimples where you just cut them all extra deep. Take a piece of tinfoil or silver tape. Tape it across the top. Put it in there and start wiggling. Locks naturally want to work. So the tinfoil kind of starts to dent and dent and dent until you get to the right spot and the lock opens. I know a guy, Barry, who I met at the H2K conference. I was on the panel with him there. He could do that in about 15 seconds to most dimple locks.  I didn't know that. Now I know. Because I never even thought of doing it that way. But hey, he's pretty damn good. He's like his website, but I don't know if it's top of my head. I looked for Barry the Key Wells somewhere. He's smart. Lockpicking.nl. Who said that? Thank you guy over there. Was I good over there?    As was any of my electronics because anything with flashy lights and buttons on a plane it really, really pisses him off. I mean, everybody, when I was on the plane I dressed like this.  But I dressed like this on the planes and for speeches and I went on, they searched my shoes they checked my pants, they checked my...   Okay, it's everything out of that box. So that was my quick high security lock part. Does anybody have any questions on any locks they have in the house or anything?  Did I cover medical? Somebody stole my medical locks. Actually, no, I must give them away or something. Yes, sir. Okay, we'll get to those in one second. I'm going to cover medical. I'll get right to that though. The BMW Sidewinder or laser cut keys. If anybody's seen... One second. If anybody's seen... What is that? 360 seconds where he's talking about these laser cut impossible to break keys. The laser cut has nothing to do with it. It's the transponder in there, which we can involve that in one second. Medical first. Medical is probably the most popular high security lock in the United States. I think it's one of the greatest. It's competitive of mine, but I still think it's a damn good lock. I'm supposed to be here talking about the Cobb-up pyramid lock, but my boss forgot to give me one, so I can't talk about it too much.  It's a dimple key system. Now, the medical lock works in a very, very unique way. The pins that normally come up and down, up and down, up and down, still go up and down, up and down, up and down. But if you look at the tip of it, instead of being round, it's cut into, like, almost a slot. It's called a chisel point, because it looks like a chisel. Now, this has to turn in either center, left or right, which makes it a real bitch to pick. Now, this has to turn in either center, left or right, which makes it a real bitch to pick. I know very few people who can possibly do it. Some claim they can do it every time, because there's a little wire that can go in and feel around the corner. But it doesn't work on a new one if they fix that problem. There you go, photograph. Cool. Now, um, Medico, I think it's a very good lock. I wish I had one to show you guys, but I messed up and don't have one, and that's where I leave that. But I'm sure you can find one around. They're very popular. Now, let's see. First, we talk BMW, then we get to your, what was your question? Round locks you see on phones in common lock boxes. You mean where it looks like a tubular thing, like a vending machine? Is that what you mean? Okay, I'll cover his first, because yours is a little bit harder.  Hey, still around somewhere. He did this early in lock picking. Tubular locks work in the same concept, only a different functional way. Instead of having the pins all on a straight line in, they're in a circle, and they work the same way, the same shear line, just like each one has its individual shear line, and all you do is you put it in, you're pushing all those pins in, and when it gets to the shear line it turns. It's a very simple concept, but they're very easily beaten if poorly designed. Because if the manufacturer doesn't build it extremely well, you can impression it, which I was talking about with these, really quickly. Same concept, there's a dimple key. They have a special tool for it, it has a bunch of little metal fingers that go in there, and with the proper tool you can press those in 10 seconds real quick, get it open, and it works just like a normal key.  Doop! Open, open, open, thank you Coke out. Put it back, doop, doop, lock it again, and then leave the 50 cents at the bottom saying thanks for the Coke. And never steal, it's not nice. I'm serious, no, I don't steal. And what else? The Sidewinder type keys. I'm sure if any of you have ever seen a new Volkswagen or BMW, any expensive keys, where it doesn't look like they're cuts in the end, it looks like this kind of Sidewinder thingy looking thing, that's the key he's talking about. The way that works is just like any other key, it's just a different way of doing it. Now the reason why it's hard to pick is because it's really hard to get your picks in there that work the way for it properly, but there's this guy named Randy Meis, he's a little southern guy, with like two teeth. And he works for a company called Lockmasters. He's a real nice guy also. One day he was at a car dealership and he was a locksmith who went to open a locked car. And it was a BMW which is deadlocked electronically, which for reasons I'm not going to get into, you can't open standard tools because it relaxes itself and all kinds of other bullshit that's real bad.  Oh shh, don't tell. So he decides, he wants to open it up and the BMW dealership calls up headquarters and tells him we've got a lot of that locked out. We have a locksmith here, what's the easiest way to get open.  And Randy gets so pissed off, he starts flipping out.   And he goes out there and he looks with a pair of binoculars and reads the key by sight.   It's called the flip-pick lock bastard sells it. There's also a European version which is, I do not know if the European version made it their own, so I don't want to question that. I don't know if they made their own or just copied it. I know he invented his, he didn't see it anywhere else. So he made this thing and he stick it in and it fuels it out and then pop right open. You can pick these BMWs in like 10 seconds if you're good.  However, the transponder which I mentioned before is a little electronic computer-y thingy which I'm sure you guys heard of electronic computer-y thingies. And it's in the head of the key with a hidden serial number and you can read off the transponder, you can clone it that way but without the transponder number, to beat the computer is a real bitch. I personally don't know very many easy ways to bypass the computer. You can't brute force it, they have timeouts on that.   If you guys figure it out, call me up in the party.  Easiest way to throw it in the back of a tow truck that'll steal almost any car. Okay, what else? Okay, so I'm out of all this good lock stuff unless anybody wants to learn about safe locks but that's hard to learn public feeling without any good stuff behind me. But there's behind me. I think they had a screen here before. Hand up, what's up? Electric lock picks. Okay, we'll go into, we don't want to be on lock picking but I'll give a real quick overview.  When you go play pool, if you hit the first cue ball the next ball moves and the cue ball stays where it is if you hit them real tight. So what it does is it hits its bottom pin, the top pin shoots up and leaves a hole in the middle.  Now electric lock picks and it just takes a vibrator and extracts it to the back of a lock pick because it does it really fast, faster than my hand can do it. It's the same concept. It smacks it and the other pin jumps up. So basically you can get it to most places. These locks generally will not work.  And I can't pick most of these. I'm not thinking of picking locks that I don't claim to be. I know the theory behind it.   It takes no talent, no skill, very little talent, very little skill, but you can do it. Talk to me. Computer designed picks and computer designed profile. Computer designed picks. What they are are basically rake picks. I'll get to you in one second, guide it back.  Computer designed picks take the most commonly designed patterns of locks, setups, and put them onto a pick and then you kind of wiggle the thing and rock it back and forth and you get lucky. That's what computer picks are. What you're doing is getting lucky because they're designed the most common ways to design patterns. Of course, most locks are not going to be...  There's certain patterns that they try to follow and turn in spacing. So computer picks are just the most common spacing and things. Guide it back in the iron shirt. Marlok. I'm not familiar with it. That sounds to me like some kind of electronic access control device I do not know about. If you tell me the name later, I'll write it down and I'll know for you tomorrow. Email. Yes. We're not up to that yet. That's the electronic access part. Thank you. At this point, I'm still talking physical keys and locks and things that you can break with a hammer really easy. What's up? Mushroom pins are still completely used. All that does is make it harder to pick instead of having a smooth, cylindrical... Basically, I can. If you buy a can of soup, a smooth part. They take it and they cut a notch into it and it makes it harder to pick. Mushroom pins are still commonly used and tons of things. American padlocks. They also use all kinds of good stuff. Anybody? Oh, sure. And then you're in the back. Simplex locks. Next part. I'm actually a manufacturer's rep for them. The other guy in the company is I work for the same company, though. Next. Control blank distribution. To me, getting a key isn't hard.  What I mean by restricted keys is you go out to the store, you have a quick set key, you go to Home Depot, you say, give me a copy and say, sure.  You go with a restricted key system. Everybody has one in a while where it says, best do not duplicate or ace do not duplicate. So you go out to the Home Depot guy and you say, do not duplicate and he does it anyway. That's not really restricted. That was restricted like 15 years ago. Medical has restricted, asset has restricted. There's all kinds of different restricted. The easiest way to do this and to explain it is basically that there's different...  I'm repeating myself here. This card system is the first one. Let's go with medical card systems. You have a key. If you want a copy of your key, you come with basically a credit card, this wipe. It sends the information down to medical. Medical sends back the key cuts and they can do it. To get those key blanks, you have to be signed up with medical. As a medical authorized dealer signing a whole non-cheating contract, you won't give away the keys, etc. Assers has the same kind of setup. A lot of other companies have the same kind of setup. You can't get the keys unless you're special. There's government issued keyways. Medical has government issued keyways. I personally still can't get.  You see the little imprint of it and you push it down and you can make your own keys real quick just by impressioning the shape of the keyway.   That defeats pretty much every key control method out there. However, don't do that because that's not very nice. I'm sorry for messing up the whole restricted key access thing. It's an easy concept to explain, but I'm not drunk enough yet. Anyway, anybody else with lock type questions? In the back in the orangish shirt. Okay, master key systems. You've been much better explained by the lock picking guy. Real quick though, how much time? Maybe I have a watch? Everybody has a watch. 40 minutes. Cool, we have lots of time. Last time I did this, I ran out early. Okay, master key system. You have a pin. If this is over your head, I apologize. I won't be long. You have a pin. You have a top pin. When they come together, the lock don't move. When they come apart at the shear line it moves nice. Everybody's happy. All master keys is you throw another pin in the middle. So you have multiple shear lines. If you throw another pin in the middle you can move either down here or up here. By doing that you have multiple options so different keys can work the same lock.   Basically, if you have a master key master key is going to work more than one lock. All the locks in the building are going to work on the same master key so that the janitor doesn't have a huge ring on his belt. The janitor has a huge ring on his belt getting the locksmith. That's it. If you need more info about, one second. If you need more info about master keys come talk to me after buy me a drink. I love people who buy me drinks. I'll tell you anything you want to know about locks. You and then you. I'm sorry. You, you, and then you. Yes. They came first, you've got your question. No problem. You and then nobody.  Basically, you have six pins or so. So you put different combinations where different keys will work different heights and by putting different master chips in you can get amazing, I can work this up a system where I have one key that will work ten different locks a different key that will work five out of those ten different locks a different key that will work two out of those ten different locks a different key that will work one out of those ten different locks.  Go on the internet and you can find master keying very basically and there's programs out there for it and I can teach you the algorithm for it if I remember it, which I don't. It's very, very basic mathematical calculations. Yes, over there. I would want to say many, many, many, many, many. Many, many, many, many. And you can even put in more than two pins. I've done master key systems like if any of you have ever heard of IC Core just one second, IC Core where it's that best key that's kind of got the square head that says those are usually IC Core which is interchangeable core keys those have the regular pin then usually a master pin then usually a change key pin then a top pin then a spring and a cover plate and then you put in a lock. So they can be a lot of fricking pins. That's why I talked about the Corbin Jumbo which is just more room for more pins for better master key systems. Yes. Much, much easier to pick much, much easier to pick master keys I should have mentioned that, thank you. Okay, wafers. Wafers are the same concept of moving up and down to a shear line but as a rule they're much easier to pick simply because the tolerances are less specific. In a wafer lock instead of having a pin that goes up and down you have a flat piece of metal that's shaped with a little cut in the middle. Put your key in, it moves the wafer either down or up and the top and bottom have to line up the outside edge and it matches the shear line. That's a wafer. They're usually a lot easier to pick. I'd suggest learning not on them because they give you a full sense of gratification and then you turn around and try to pick your house like, oh, you're all disappointed. If you're going to learn how to pick a lock, go to a locksmith, you can't tell them why because they usually won't do it but if he's a cool guy you can ask them, oh, you rock.   After watching you and Barry I contacted a party I found online I said I was a bona fide locksmith and he sent me this whole pool of locks.   Actually, a bona fide locksmith appointed to the statute was anyone who picked locksmith. Cheers to that. That's a pretty cool guy. I like him. Have you practiced picking at all? Come on up. Have you picked with you? I'm horrible at picking locks.  A hundred-year-old, million-year-old lady she locked herself out. Shit happens. So I go there, I show up with a cheap quick set in an hour by picking like five seconds, put my tools down say I'll be right back going to get my bill pad she says, fine, I'll watch your stuff.  Here you go, play. What's going to be pickable? Not that one. You want to try to pick the prison lock? You ain't going to get it. Give me your shittiest lock. Shittiest lock. Three pin, no problem. Four pin, I get stuck and five pin, I usually get nowhere. Well, you're going to be in trouble. Yeah, I'm not that good. I picked the one with the hole in it. No, that's cool. I've been doing this since I was really, really, really young.    So don't do that. Cool, thank you. Because you bind the pins too much and you end up not getting anything.  How do we turn that on? Is that what I come to? Oh, I want to see your hand up. Nobody step here and stop clapping. It takes two goddamn long. You're laughing, okay. No, no, no, no, no, no, no, no, no. I just learned about this last week, so I'm going to talk about this and be excited. Because I went out to a job where the construction key wasn't working and I went, uh-oh, uh-oh. So I showed up and I went, this sucks, the guy's built the room. It was actually manufacturers that were from somebody's line. I'm not going to mention who's not mine. The way a master construction keys work is they, instead of taking a master chip, they add in a little ball bearing in the place of the master chip. Now that ball bearing works just like a pin or anything else. Until you put in the master key. I'm sorry, the construction changed key, construction removed key, I don't remember the name of it. What? No, it's not a normal house key. It looks just like any other key, it's just set up to a different combination. By being at that different combination when you turn it, that construction master ball bearing is just below the shear line, so it's the first pin.  Now, you can see that ball bearing. The proper way is you turn it all the way around and when it gets to the bottom there's a hole drilled and it just falls out the bottom. Once it falls out, it's not going to work anymore because there's no pin in there. And it's too small for the regular pin to fall out, but the ball bearing falls out and won't work anymore. That's how construction master key works. And as soon as you take the key out, it stops working from that point on. It works.  Pull the thing apart, dump it down. Anyway, anybody else with lock questions? You get it yet? Why not? Come on, be cool. You can work on this one while I work on it. Okay, give me the tension wrench in the pick and give me a... Give me a diamond head. Like the little folky thingy. I don't like that one. Hold on, I'm getting my toys. I just bought this pick set yesterday. I don't have them all organized like I like them yet.  Now what are we up to? Anybody else with any lock questions? We're going to go electronic now. Okay, one last lock question and we're going to go electronics. Last lock question in the middle on the white shirt. Okay, office furniture locks. What they have in the back is usually a wafer that goes too high and that holds the lock in place. Now what you do is you take an extra long key, usually. You just turn the tip and you stick it in. Just pulls that wafer down. And I'll let you pull out the whole plug. And if you're really good, you don't even pick the lock. You just take a big stick in the back and pull down the wafer and pull the whole lock out. So talk to me, people. What do you want to know about electronics? Okay, last one real quick, real quick. Padlock shims.  I didn't want to talk about that though. I talked to some of you about that at lunch. Yeah, there's a Shomer Tech as well. Padlock shims. How many people here went to high school? Cool. How many people have that shitty master combination lock on the locker? How many people can open them in under a second? Then you're the cool people here. Reason why is picture in the padlock. Well, I got padlocked here but you can't really see too well. You have the shackley... I can't do this. I'm not a good... Okay, you have a shackley thingy. That's the part that goes down. It goes in the hole and what happens is there's a little spring loaded piece here and when it goes in the hole it goes past and then locks into a channel. This is spring loaded with a notch on top so that once it locks in it can't move but it has to push this back somehow as soon as there's a bevel on it. So it locks in.   It's great. That will work on many many padlocks or some will have mechanical connections that will not let you do that. Those are more good over. I like those better.  Electronics! Yeah! Electronics! Electronics! Yay! Golly golly gee, golly golly gee. Okay. Why is there access control? Because somebody wanted to make money. That's it. Master key systems were working fine but they're vulnerable. You go into access control. You have card systems. You have pins with a combination keypads. You have biometric fingerprint ID, retinal scan, hand geometry.  Voice print.  I'm going to just use real life examples because everybody here has probably been to at least one office where somebody walked up to the car and the door opened. What that usually is is going to be a couple different technologies. The first one I'll go over will be Magstripe because everybody's got an ATM card or a credit card or a hotel room key as somebody mentioned before.   Hey, cool. If I hit this it makes a thump. That's fun. So it's just magnetically encoded information on a piece of film. What happens then is it sends a little serial number or ID code out. Where does it go? To this box sitting in some back room called a control panel. So you have this reader, this card. The card goes to a reader. Readers send signals. Control panel.  Looks at his little Microsoft Access database and goes, hey, look we found Bob number one, two, three, four. He's allowed to come in from five to nine.  He's not coming in. And it doesn't open the door. Or it says, look, it's six o'clock. Bob's allowed in. Okay. Or it says I don't know what five, three, four, nine is. So let's deny him access. Access granted. Or access denied are your usual options. If you have other options, you're pretty cool. The door is going to open. The door is not. I control other things with access control. I personally am the access control guy in my company. I also do CCTV and all kinds of other good, I've done alarm systems. I'm licensed for in New York state, but I don't, I'm not going to add it. I don't like it. Just pulling wires through addicts and crawl spaces. Until you get up to the high end and that's cool. Question chair. Other options for access control. Wait there yet. Hold up. Now, that was Magstripe. Proximity cards. Proximity cards are the ones where we just walk up, touch it and keep walking. There's also smart cards, but that's not going to do that. Walk up, just touch it and keep walking.  It's a wire in a circle with a little chip in the middle and it's got radio technology and engineers explain it and I didn't design it. What's up? Are you an engineer? I know, I know, I've played with it a lot. I know how it works. I just can't describe it well enough to teach it. But that's going to be a lot of details and these people here are going to go home. Describe real quick. Come on up. Nobody can hear you otherwise. Clap everybody! Good, you talk, I'll pick. Don't drink my beer. Basically what you've got is a big coil in there. I knew that. The sensor emanates a field and when you put it near there it causes induction and the coil empowers the chip. The chip says, oh, I'm awake. Let me start talking. It starts jabbering and they talk back and forth as a result and it says, let me in, damn it. Really? What language? Depends on what I've been drinking. See, I like it. That's cool. The same technology used in automated toll booth systems. No, that's different. Okay, so that's proximity. Thank you, dude. What's your name? Wait, what's your name? It can be famous. What's your name? Rob. Rob what? Ah, come on, I gave my little name. What's your nick? Where do you go by? Vogue?  Cool guy, Rob, with the long hair. Buy him drinks. Okay. Oh, she's going to interview now. She's cute too. Wow, look at that. I want that next. Can I have one too? Everybody hold up. Everybody hold up. Everybody come on clap for her. Come on, give me a hug. I'm visiting. Please. I love you.  Anyway, I'm used to hacker conventions where there's like one girl for every 3,000 guys. So I come to DEF CON, I'm kind of cool. It's like there's actual female population. And no girl is going to defend it by this. They're not Arm Candy here. It's great because in New York where I am, a lot of them are just there with guys.  I'm like, wow, cool. Anyway, anybody who got offended by that took it totally wrong, so don't. Okay, what are we up to? Proximity. Let's go to Smart Cards because Isaac, if anybody knows Isaac, probably a lot of people do. But he was wrong, so I made fun of him. But he taught me a lot about there's conventional smart cards that I investigated. And there's new wireless smart cards, which is very different technology.  These are my H2K badges because I'm cool. I went there too. Okay, this was a smart card looks like on the front. If you look real closely at the shiny thing, there'd be contact points with Connecto. They also have new wireless ones now. On the back you see a Magstripe. But I'd probably mind to work my hotel room because I want to be really cool. And yeah, so anyway, what else can I talk about? Hold on, I got a drink of beer. Beer makes you smarter. Or at least makes you think you're smarter. Okay, what were we talking about? Anybody? Anybody know? I don't know, I remember. Electronics, oh yeah, cool! Mr. Electron runs from negative to positive. Okay, so that was basic proximity. That was basic smart cards. Smart cards are smarter than proximity. Proximity cards have a serial number embedded into them. They transmit when they connect and they just send their serial number across.   You can store a memory on them, you can store fingerprints on them, you can store faces on them, I love them. I love selling them. Anybody who wants to buy one, talk to me. I'd be happy to sell it to you. Hey, Bobcats in the back, wave to me. I just noticed him. He really hates it when I do that. Anyway, so that's smart card that's a proximity mag stripe. There's another one called WeGand out there. Now WeGand confuses people because there's two things that Mr. Dr. WeGand invented. Well, there's a lot of things, but there's two popular ones. There's the WeGand protocol, which is what a lot of access control devices use. There's ABA, which is American Bankers Association, WeGand protocols, those are the two popular access control protocols.  I talk really fast in case you haven't noticed. Also, WeGand invented a kind of card. This card is great. I love the way it works. It's ridiculously easy to beat, but I love the way it works.      He's cool though, he brought me a beer, he rocks. Anyway, so, no, thank you. So WeGand basically takes a metal piece, really thin metal, and makes an image, a shape, or a square, or a circle, or a perfect shape, and then you stick it next to a little x-ray machine type thingy, it actually slides in, and it shoots Mr. Electron down through it, and it takes basically a photograph of that image, compared to its database that's the same. So how do you beat it?  Oops, I just beat the whole system. But that only works if you do it right, and there's all kinds of other bullshit to keep you from doing it. The WGAN protocol basically just sends a serial number. Same with ADA, but some way has to be between communicating from the reader to the control panel, and that's the WGAN protocol generally. There are other protocols. Now, there's a lot of things you can do with access control besides just controlling doors. You can set up different security levels, as I'm sure some people here know about. You can set up different time zones so people can go in from 9 to 5, 10 to 6. You can set up one-time users, but once it stops working, that's great for if you want to hire someone to go fix your bathroom.  There's 100 reasons for it. There's great, great things. Now, does anybody have any questions? Because I'm sure there's going to be a few on electronic stuff. Easy pass. One second. Question in the back. What was that? Moss Hamilton X08. My company is a manufacturer's rep but unless I'm wrong, which is that? The padlock? That's the X02. Oh, that's the electronic safe dial. Oh, that's the safe dial you're talking about, right? Okay, I've done a lot with Massham safe dials, but I was always tired and screwing them on doors and busy. Moss Hamilton has a very creative idea for safe dials, which I'm not going to get into safes, but real quick, they actually have a generator built in so when you turn the outside of the dial, it creates electricity by turning with this thing called stuff and makes electricity and once it does that, it powers up the lock and goes, and you punch a new code and that's one way. I don't know if that's the X08. I'm really not sure off the top of my head. I don't know those locks that well, but now that you've created electricity, most of them are battery operated or you have to plug in something. That's Massham. Who wants to talk biometrics? Nobody.  Okay, yeah? You have a question? Oh, the EZPass question, I'm sorry. Okay, EZPass is more gooder than proximity because what EZPass is actually has a little battery in there, but they don't tell you that.  EZPass is a basic transducer system.  But EZPass is a very basic transducer system. It's got an antenna. It's got an EZPass. It goes under, it says, hey, yo, I'm here, serial number. And the reader goes, okay, okay, you're out of money. That's the EZPass. They're almost all the same. Yes, sir. How would you view the Magstripe Block? With a hammer. Magstripe is a very, very, I consider it a good technology. The easiest way is, all you have to do is get your hand on somebody's car and you can copy it real quick with the proper technology. But to actually defeat the Magstripe Block, there are Magstripe picks per se. I personally don't really believe in them because what they do is they try to brute force the Magstripe and you have to have the right protocol and everything. And if you wrote your software right, which I guess somebody here has probably programmed, you could just make it stop after like three tries. Yes, over there. EZPass only transits when it goes near. It gets hit by a signal and says, yo, what's up? And sends it up. And if it always transits, it would be great for attacking you. What do you think? What? I'm not familiar with Fast Track. It's probably the same thing. They're almost all the same. They're around here.  Yeah, they're almost all the same. Yes. I don't know. Read the back of it. He asked for frequency.  I got one sitting on the top of my car. If you want to come back to my house in New Jersey, you can come look at it. Take a frequency counter next to it. How many at a time? 20 minutes. Is anybody getting bored yet? Want to do some other cool shit? Okay, who's getting bored? How do you go out? Juggle? I'm not good at that. I'll drop on my foot and break my toes and then you'll have to carry me home. Biometrics. Okay, fingerprint retinol or body geometry, hand geometry, what do you want to talk about? Retinol. What do you want? How do you defeat hand geometry readers? Take a hand in it.  Take it in the hole. Okay, real quick. Okay. Yes.  In Chinese metal. What this is doing is it's we'll do hand geometry first because it's very basic technology. Before we do retinol, we have to retinol in a second. It's just harder to explain unless you're an optometrist, which I'm not. Okay, hand geometry. You have a hand. It's your hand. Nobody else has the same hand. You stick it in this reader. Once you punch in your code, it goes and checks its database and says this guy's hand should look like this. Why does it do that? Because it's hard to identify anyone's hand. So it says this guy's hand should look like this.  If it doesn't look like that, it goes good. It measures point to point, knuckle to knuckle, tip to knuckle, thumb to pinky, thickness of fingers, samples, random points. I personally don't like them. They're supposed to run the wall because it's huge. Come on and laugh. That was funny, wasn't it? Thank you, fuckers. Jeez. At least I have a little bit. Thank you. You're not even supposed to curse these things. Anybody underage here? I'm sorry if you are. Are you really? How old are you? You're 16? Should I watch my language? I don't know. What's the illegal age for cursing in this state? Okay, so where was I? What? Hand toasters. Oh, hand toasters. That's where we were.  So why do you like to go to a small device?  Bioscript is B-I-O-S-C-R-Y-P-T instead of IPT. It's good stuff. It's fingerprint readers. Everybody's... No, not everybody. A lot of people here probably thought it was cool to go out and buy that compact mouse with the fingerprint reader in it.  That sample's about 15 points off your finger, makes a map of those points, stores it in its database and pairs. My reader, because mine is more glitter, instead of sampling points on your finger, samples the swirls, sample shapes, because if you put your finger sideways or you get a cut, it deletes points, but those shapes are still there. If you cut a circle in half, you can still tell it's a circle. It just doesn't... just has a cut down the middle. So mine sample's 340 shapes off your finger. Their sample's 15 points, mine's 340. Mine's more glitter. However, you can turn down the security threshold if you have a problem. I've only ever had one problem with the reader, the Bioscript reader. And this was actually last week, and I'm still pissed still about it. I haven't thought about the problem yet. There's this lovely gentleman and there's over 500 people in this company, so screw me. And he puts his finger on. If you look at his finger real close, he has tons and tons of cracks in his finger. And because of the cracks, it's taking those cracks as shapes, because he has tons of them. They're not cuts. Like if you cut your finger, it'll still work. If you draw ink on your finger, it'll still work. He has tons of cracks from age in his finger. And it's the only time I've ever seen it work. I've solved it with 90-year-olds. I've solved it with 100-year-olds. I've solved it with... on Park Ave, I have a building where on Park Ave, New York, where they have a bathroom, another bathroom, a gym in the basement. And all these old men like to come watch the girls' exercise. And then they don't want to have to carry keys, so they walk downstairs and put their finger on it. But the older you get, your fingers start to get cracked and wrinkled. And also, you lose... In my reader, it uses conductivity of your finger instead of capacitance. So it actually uses your finger's moisture content to conduct to see if there's a finger there. The old men, fingers get so dry and so cracked they won't even read it. And it works. Yes, sir? Basically, a lot of the left and right fingers are used to be treated by the breathing of the game. Okay. What he says is a lot of these can be either... can be breathed on and, you know, into the thing and leaves a little mark on there from where the fingerprint was from the grease on your finger. And a lot of them will go, oh, look! The same mark! And open. There's also the old gummy bear trick, which everybody's heard of on the internet. You take a gummy bear and you push it against there and it reads the oils and then you can put it back on. And it looks just the same and it works. Now we'll work on my screw, you guys. We tried it really, really hard. We couldn't get it to false. What else? Biometrics. Any questions about biometrics? Face recognition. Same concept as hand recognition. It's not that intelligent stuff, which measures point to point, point to point, point to point. And measures your face. Retinal scan, I think, is cool. I don't sell any of those products. I'm hoping to bring one on soon. Retinal scan scans your retina. I'm not an optometrist, but I've looked at pictures of this stuff.   Plus, your finger gets scraped. Your fingers get dirty. You wear gloves in winter. You don't want to take your glove off for a biometric reader. Retinal scan, you're welcome to do like this. And it reads your eye. It reads the guts of your eye, basically. I'm not an optometrist, as I said. I don't know what guts of your eye it reads the retina. But your retina is very specific to you. It doesn't really change if you die.  From what I understand. But retinal scan is a very great technology because your eye doesn't get scratched. Your eye doesn't change. You always have your eye with you. You can't exactly falsificate. Falsify. That's a good word. Falsify an eyeball without cutting it out like in that James Bond movie or whatever it was. Golden, I think. What's up? Talk to me. I actually do color contacts and changing the retina. I haven't heard of it. It did not work. Somebody got really drunk and tried it. He was an optometrist who designed that. He went over to an engineer and tried it and they couldn't get it to false. I do not sell the one I wish I did. There are good ones out there. I don't know any names. First you and then you in the front or back. It's a little louder. I know nothing about that. I don't know enough about the eyes to answer that question. He asked if people with cataracts would be a problem. I do not know the answer. One second. You first. That's a damn good question. Smoking weed. Smoking weed. I don't do that. But I know what the people do. Believe me, I know.   Realistically, your eye will not be... your pupil should not dilate enough that that will be a problem. I have never worked with this stuff personally hands-on. I've installed one of them, I think. But I've never sold this stuff. I've never seen the tech specs on it extremely. Possible. You win one second. There's a guy up here first. I don't know who it was, but he's over there somewhere. There. Okay, he says, I know nothing about eyes. Sounds like a good idea to me. Sounds true. I believe him. Why doesn't it work on dead people?  You're dead. He's first. Wherever she was. You forgot your question?   No.  That's a good question. It would have been good if you had said that. I wouldn't have known the answer. Wait, because he asked first. Yes. If you can get to it, just short the two wires on it. The box behind the reader. Okay, I'm going to give away the industry's biggest secret. Everybody write this one down. It's cool, I gave away the last kind of thing. It was like, ah, it left for half an hour. Everybody's going to look up to a door and see a keypad. It's going to say nothing. It's going to have a bunch of numbers on it. Three little LEDs on the top. And you're going to look at it and go, I wonder if I can rip this off the wall and short the two wires in the back. So you can take your little screwdriver and unscrew it off the single gang box and look in the back. There's a relay there. Short those wires and you're opening the door. I'd say about 80% of the locksmiths out there. Nothing gets locksmiths. I was a locksmith for a lot of years. I have great respect. But a lot of them, not a lot, not all, do not know much about electronics. And they don't know that having a relay on the back is insecure.  Ah, two guys didn't laugh. Everybody else did at the other con.  Yes, right over there. Ah, you're next. And then you. Yes. What about iris scan? I don't know anything about it. I can't answer that question. Probably the same concept, yeah. Probably the same concept as retinal scan. I don't know enough about eyeballs. I got one here. I got one here. That's about all I know. You, and did I miss anybody? I missed somebody over here. One second. Yes, you. Mechanical locks? Okay, sure. Oh, the simplex push button locks. Ah. In the simplex push button lock, we'll get back to electronics in biometrics in one second. Simplex push button locks.  Excuse me. Every time you push the button, any button, all the wheels turn one time. Depending on which button you push, that wheel turns two times.  You push the number one, number one turns two clicks, all the other wheels turn one click. Push number three, number one turns one click, number three turns two clicks, and all the other ones turn one click. Now by doing that, it's simply turning them all until all the slots line up. Once the slots line up, you turn the handle, the bar goes in. If you don't go in, the little piece of the inside goes up and it doesn't unlock the door. If the bar goes in, the little piece of the inside goes down, it unlocks. Very, very simple technology, very good. There's a new Ilco 5000 series coming out which has an enter button on it where you push your code and hit enter and then open the lock. Same concept, just looks sleeker. There's somebody over here, right? Talk to me. Okay. I know what he's talking about.   It's read way over my head. Talk to a neurologist about it. How am I on time, anybody? I'm fine. How am I asking you? Let's go. I don't want to go over you.  Okay, so talk to me. Anybody else questions? There's a guy in a yellow shirt with a hand up. They put those in the Times Square? Wow. New facial recognition in Times Square. Nobody will next week. Okay, I have heard about this. This is a very big brother-esque technology. What they're doing is they're taking facial recognition once. You know a lot about this? You know something about it? Come on up. We love her. Everybody clap! We have a mic. It's actually anybody who wants to do research on this. They actually are already using this in London. So if you want to go to London, at the entrances, all the entrances to London, they have face recognition that checks every single face that comes into London. If you're a criminal, it automatically sets an alarm that goes off and lets them know that this person has entered the city. Like the concept behind it is is that if you're a criminal and you're in the city, okay, we can't do much about it. If you leave the city and you come back, now we know. And this is the same thing that they're putting into Times Square. Act your soul.   Okay. That's cool. Let me get that off the microphone because you can't hear one second for you. Am I on time? Yes. In London. In London, talking about that system, you can get past it and there's already a system in New York to get past it. It's some routing software that will route you through New York City. It'll tell you where you can go where there are no cameras. It'll be a great system. Of course, going to Times Square, you can't.  Are you going to Kevin Mitnick Mask? Can you stick it in your face? And then you're really cool. All kinds of fucked.    Then they have shitty software, tell them to write some better. I think one of the things that I heard when I was researching about the London is that if you're able to change your face or cover more than 35 to 50% of your face, then it's much more difficult for them to recognize who you are.  But then you also really look like you're trying to hide. By the way, before he walks away, everybody clap for the DEF CON goons, they're doing a great job. I love you. I love you. Nobody here ever gets my card. She's getting one. Thank you.  No, no, yes, guy in the middle. And then you. Then you, then you. Blunt trauma to the face.  Come on. You're worth it. You, then you. Yes, you.   I have no idea whatsoever. There was a guy over there who was talking about it.  No, but I saw it on TLC. TLC, the learning channel makes it. The learning channel makes everything. Guy in the front. Cool guy along here. They're using facial recognition in the casinos. Facial recognition in the casinos? Yeah. No going to casinos anymore in Las Vegas forever and ever according to him. Guy over there who had his hand up. Yeah. False positive and false negatives are really a big problem according to him and him and him and him and him and him and him. I don't know very much about facial recognition. False positive and negative rate. Good though. Who are we up to? Yes, do it over there. We're running out of time so real fast. Measuring this between your eyes is a very common technology. However, a lot of people confess because of that. They say it's impossible no one's exact.  It happens. Anybody else? How long in time? No camera dude, you're in charge. How long in time? Three minutes. Cool. Everybody start counting. Who else you got? Everybody's walking out. Don't leave me early. I miss you. Guy over there with the beard. Can you use a gel coating on your finger to defeat the thumbprint reader? Some. Yes, the gummy bear trick. I mentioned that before. The gummy bear trick works on some readers. Not on mine. We tried it. We tried it. We tried it more. I know one way that there's some guy out of I think it was out of Germany. It uses a circuit board printer to print the traces. I can trace the fingerprint exactly. I heard that works but I'm not sure. Guide it back, then guide it aside. Guide it back. The way that works is generally that all they do is they check it and then they output a signal. So what they do is the facial recognition will be all on board and then if it says okay it'll output a weekend signal or output an ABA signal. Same with my biometric reader reads the finger, checks it against its own internal database and then outputs the weekend signal. The whole database is something I don't know about. I'm assuming it's all irises. It's all computer algorithms actually. I really don't know too much about I think the guy in the yellow shirt was next. Tricking my fingerprint reader hitting with a hammer and knocking off the wall is the way to do a denial of surface attack. Otherwise you go in the back room and you short the two wires on the control panel in the locked room behind the armed guard. My fingerprint reader is pretty good. It's rated number one in the U.S. I think the Google World not my short so I can't say it.  I don't sell to this area so nobody here is going to make any money but I'm being honest, it's a damn good reader. I only sell New York, New Jersey. So if anybody here wants to buy it there, come on over. Is there any good way to fake out the solenoid? By solenoid you mean electric lock or mag lock or any other device like that, I understand.  If you have a drop ceiling you go up on the ladder and you pop the tile and you reach down and you go, that works too.  I'm not sure about the details of it. Go over there. Yes. According to a fire code when you have a mag lock on the door you have to have a request exit device. Actually it doesn't request exit device such as a push button and a motion detector. What she's saying, I'm out of time. Real quick, a motion detector what you do is you walk up the door and the motion detector sees you and lets you out. Or you hit the button and that lets you out. In case the motion detector doesn't work, we're out of time. Have a lovely evening everybody. Welcome to Defcon.


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Great welcome to the last set news to get top stories and crypto and break them down into bite-sized pieces today Just as the thumbnail the title suggests There is a major bank and they have lend credibility and thrown their weight behind crypto and Digital assets, so we're gonna take a look at what that report is and what is going on. I gotta tell you I think this is Like I said, it doesn't get much bigger than this and I'm we're gonna show you exactly how big you potentially be So we'll take a look at their report and this is from surprise surprise Wells Fargo I'll take a look at a story about how meld the lending platform built in Ferdinand. I Already had a staking video and there's also a bank partnership in the works and then lastly as I call it clown news Bitcoin ETF and Venezuela and the very last we'll take a look at the Q&A So hold all your questions until the end because hard to sort through all the different comments and dialogue So hold until the end if you possibly can it'll be fantastic But first let's take a look at the market and before you're going if you're watching this live There's no timestamps, but if you're watching the recording, there will be timestamps below So you can skip ahead to whatever you want to do and then just know that the news takes around I say 10 to 15 minutes This one might be a little longer and at the end the Q&A could go for under 20 minutes So just be aware that these videos are long, but most of it's just Q&A Which I think is that personally my favorite part. So, all right, so let's jump into the market itself so today's a good day and Take the wins. We're above 2 trillion We've been kicking around for quite some time and this is what we got and I'll take Bitcoin Oh my almost 44k. I think it's kind of even 3,000 not a big deal and if we go down the big winner today is XRP 10% in 24 hours and it jumped Solana and Cardano. It's up 37% in seven days So I don't know what's going on with XRP So if you have any insider information drop that in the comments below Because there's no particular reason that I know of personally and we've had nothing but good news lately with XRP The only thing I could think of is that somebody knows something about that SEC lawsuit But that is just a guess. I have no idea and then lastly, I'll say this about the market Everybody's happy because it's up. I'm happy. You're happy. Everybody's happy, right? but just remember nobody everyone broke taking profits and I always want to talk about that coming into it because I You know people say oh, I couldn't you know, I'm out of money because you know everything dropped Well, you don't have to do that. That's just what I'm gonna do again investment opinion Investment advice and let's let's just roll into the big show which is I thought this is pretty interesting this report from most far this just dropped today and The reason why I'm slow first of all, let me let me just take a look at something real quick Yeah, there we go. Okay. First of all, the reason why I'm so excited about this is because it's just another example of Just how a big entity can be wrong And they can't get it right and then all of a sudden they switch course and they are right So first of all, if you're not from the United States Wells Fargo is a pretty big bank It's headquartered in San Francisco It's one of the leading financial services groups in the US total assets of 1.9 trillion Deposits of 1.4 trillion and loans of almost almost another trillion or 888 billion So that's the total always take a little assets about almost 2 trillion and everything together, right? So no small potatoes. Also why I think this is important It's because we see the same thing over and over again It just never stops and that thing is that people Entities institutions corporations. They all start with like that's a scam. That's not gonna work Then it's maybe we should do something about that. Maybe we should stop it Okay, we can't stop it and now we're gonna have to play ball because we don't want to get blockbustered And it's the same thing with Wells Fargo. This is a report On July 15 2019 as Wells Fargo bans customers from purchasing crypto You see I've been around long enough to remember all these stories. So when I see this Wells Fargo come in, I'm like Yeah, but aren't you the same people that banned me from buying crypto?  But if you're on my side now, hey, I'm pretty happy So let's get into it. That's why I think this is so big. So Here's the report itself. So crypto Too early or too late. Well, this is the report has came out and states here This is the takeaways the overall overarching theme Crypto users are growing globally and rapidly off a low base crypto appears to be a Near a hyper adoption phase hyper adoption hyper adoption Not like we've got mass mania or a hyper bubble but hyper adoption Similar to that of the internet during mid to late 1990s and they got a great graph which lays that out We believe that crypto currencies are viable investments today. Amazing. Even though they remain the early stages of their investment evolution But this is the funny part we recommend Professionally managed private placement for now as the investment landscape is still maturing. Where could I do that? Oh, I don't know maybe through Wells Fargo because there's there's entities like nidig Who are working with banks small to medium-sized banks to allow people to buy crypto and and for to custody it Now all of a sudden Wells Fargo is like, you know what? We could do that because we don't want to piece the pie Alright enough me on my soapbox. Let me step down So they stayed here our conviction is that crypto are viable investments today But that it is still early in the crypto investment evolution. That is true Now they talk about the too late to invest argument Which I think is what I get all the time Rob that I miss it Rob that I miss it Rob that I miss it You are so early. You have no idea Bitcoin's price is an example has compounded at a 216% annual rate by comparison the total term the S&P 500 index over the same period has compounded annually at A paltry 16% but still I mean you're keeping ahead of inflation if you want some safety Index S&P is pretty good 12 of the 2700 plus individuals on the Forbes 2020 world billionaires list Emerged from the world of crypto 12. That's pretty good 12 billionaires came out of crypto So not a bad not a bad place to be into just like me and you here's a Bitcoin returns in July 2010 show this to everybody That's a that is into stocks and bonds and craziness like that Which is I'm into stocks myself also people who are in a golden silver. I'm in a golden silver I just don't see the problem. Why can't I own both? This is why take a look at this price history not too bad But they say we understand the late the too late to invest argument But do not subscribe to it Bitcoin is the oldest and arguably one of the least volatile crypto But it's still roughly four times more volatile than gold. That is true We can't escape that fact and there is beauty and volatility because with volatility comes massive gains But there's a price because of volatility you have to stomach it and if you can't stomach these ups and downs Like in the traditional finance NAS that goes down a couple of points people are losing their mind We call it a Thursday. So when you're into this space, you have to be able to deal with this volatility But the reward is some pretty good gains. All right. So again, they state We believe that crypto may be near an adoption inflection point similar to the internet in the mid to late 1990s and I could go over their reasoning But they break it down just like this and sorry if you hear some crashing in the background There's a little bit of construction going on. Hey, what are you gonna do? But this I thought was actually I'm gonna use this all the time now the technology s curves This is great. I love this one It makes so much sense because on the left-hand side there could you got the 1900s all the way of 2020 and Here's this thing called electricity and electricity just so you know When it first when it first came out everybody's like, oh, it's gonna be the worst thing of all-time electricity Well, it took a little bit time to adopt but it did pretty well took about 40 years or so and everybody got to it Remember, it's always the same earlier adopters Mid-level then of course you have the laggards up here like that. I want electricity just give me wood burning stoves and then you got the automobile in about 1915 and that took a little bit of people adopted it then you have people like no Just give me a horse and then of course later on now We went to shares of the US household percentage almost at a hundred percent some people don't have cars did happens color TVs Whatever, but the thing that I'm interested in here is the last one Internet, which is these these dashes these purple dashes and Which is kind of makes sense to me the cell phone the cell phone Took off just like the internet and actually adopted a little bit faster go figure But the internet itself look at just that straight vertical line essentially from the early mid 1990s It was in nobody's home and then all of a sudden it was 20% then in like four four years or so It was almost half and then oh about 15 years. It's almost in everybody's home So you took like a 15 years and here they say is Crypto it took a while to step off because in all honesty in 2010 nobody had it. It wasn't even on the chart So in 2020 we're at about 2% 3% or something like that. So look where we're going as far as adoption Crypto adoption looks similar 1990s according to crypto comm the number of global crypto users reached 2 and 21 million Again, it's not that much We've got like almost 8 billion people in the world in June 2021 are just under 3% of the world's population impressively It took only four months to double the global population from a hundred to 200 million. Let me say that again It took four months to go from a hundred to 200 million I mean if you're if you think about compounding 100 to 200 took four months 200 to 400 could take Another four months three months four hundred eight hundred could take another three months and then off we go before you know it We're at a billion users So Well, that's okay After a slow start in the early 90s internet use used to surge from 77 million to 421 million by 2010 Worldwide internet has grown to 1 2 billion and today it sits at 4.9 So imagine that even as long as it is gone 5 billion the next one is how to get The internet in the hands of people Who don't have that's why I like world mobile token bad Just hey look at that bring it up just a little just a little a shill action right there So you can get it cook a cook a cook a cook a king of the shill All right, so sorry All right, so here this is the this is the last one I think this is one that kind of brings it home internet usage history versus crypto users again You can see here. You got the number of internet users and It just kind of breaks it all down look at how fast We have as far as internet users from 1993 95 down here So 93 2021 it's pretty much everywhere, right? And the same thing is going on right now see these dash lines with crypto so To bring it all home. This is what Wells Fargo says to do what to do now be patient There's no need to rush and they're right. I totally agree with Wells Fargo I can't believe I'm saying that Most of the opportunity lies before us not behind us the entire market cap of crypto is still less than half of apple be prudent I get I agree with that too. There's three ways to gain exposure today and this probably do not agree with but here's here's what they say There's three ways to get crypto buy crypto from exchange get an ETF or private placements Buying directly from an exchange. We do not advise. Oh really? Why is that because the technology is complex and The speculative investment risks are by option two is not advised either because as current US mutual funds and ETF options are backed by futures Not the digital assets themselves. I agree with that But the one part about you know, you can't figure it out because you're too dumb Is ridiculous? So look that little article that piece right there.   So when they say it's ah, it's too complex for everyone So what do they want you to do? You know what they want you to do use Wells Fargo that's pretty much how that that breaks down to and They say be careful and that's true. I always say it's investing is often fraught with a violent boom and busts As many dot-coms and investors can attest from 20 years ago 16,000 cryptos exist today. Let me say that again 16,000 crypto already succumbed to a shakeout in 2017 And more than 1700 or about 40 of them All went bust see my uh, I always talk about a dash of salt Dash hasn't done much as far as they're all time high and salts never really hit it and uh You got to be aware of that So they use 96 96 an example So just look at what was and what will be so in 1996 97 the most visited website at that time was AOL AOL and They stayed here and an interesting twist the story Is that the largest company the s&p 500 today was a beaten down hardware company that was in the brink of Uh bankruptcy in 97. So can anybody guess what that potentially is? I will tell you what it is Uh, it is this by market cap Of the s&p 500, you know, we always talk about the fang stocks For which is how it's weighted It's apple back in 1997 It was on the brink of collapse And AOL was at the very top now look at it apple Is at the very is the very top over microsoft and microsoft was crushing them amazon in the third place Tesla down here and vidya brook jar hathaway And then of course look at the one that was on the top before facebook or meta It's plunged dramatically So just be aware that the things that we invest into might not always be at the top So it's always good Whatever you're investing into make sure that you understand what it is make sure you're falling along with it And that's uh, you know what you're getting into because these things won't last forever see myspace slash facebook all right, and then I think That sums it up and they get a little little thing on here. So look The thing with this story is We already know we're at most of us do right if you've been in the in the game for any length of time You know, you kind of figured it all out. You're like, okay. I don't really need a bank I know I understand why you know the the value process and decentralization And and why we really can't trust these things that that are outside But the thing that you have to remember is that it's not just about us the adoption rate so far We think that it's super adopted out there as far as crypto and digital assets. It's not that's why we're so super early So reports like this where you have a bunch of people who just don't get it And they're nervous because they're like, I don't understand crypto and digital assets I need someone I can trust Not that they trust well as far, but let's be honest, but If a bank comes out and says, you know what we've got two trillion assets under management This is something that would would be do pretty well We're going to give you the green light But you know come with us then it just leads the people asking questions and the more that we get the more people We can accept and bring under our tent and I think this is why I like these types of reports So anyhow, let me know what you think about that in the comment section a little long These want to go a bit quicker. Let's go on to our next piece meld so this one Just so you know i'm super biased meld I'm going to be doing a staking video. I've already got it completed. It's got to edit it and put it up there But meld if you're not aware it was they did an initial stake pool offering on cardano He just delegated your cardano and got meld. Well meld came up and said hey, this is a lending platform We're going to partner with some banks to lend dollar against crypto. So if you're looking for some positivity, here you go so the just Quickly the market meld is entering is already a bit crowded You got platforms like ave maker dow compound alchemyx and phoenix down and venus And this is from ken olings the ceo. He says with ave you can lend crypto to borrow crypto with meld You can lend crypto to borrow fiat with alchemyx. You can get a loan that pays itself But you can only borrow more crypto our goal is to try and bring these concepts in the world crypto into the real world It will also face an uphill battle because banks when we talk about We'll undoubtedly see the meld model which aggressively shares profits with token holders and customers As a banking profit risk. There is the question of whether us regulators will ever allow meld into the country That's why they're going to start with europe asia and africa because america just can't get it right and then to finish this up Once the crypto is transferred to meld the cus. This is why I covered this on a deep dive If you just search that digital asset news melds, it'll come up Did this seven months ago Once the crypto is transferred to meld the customer keeps their private keys But that digital currency is locked in a smart contract terms the loan Loan of value margin calls liquidation is defined in the smart contract bank partners will provide fiat liquidity and technical access to bank accounts to enable customers receive loans in fiat meld has three bank partners and they're also in talks with us bank in a few european financial institutions, so That is what we got and uh Oh, man. I didn't bring it up. Sorry real quick same thing Mel partners banks to for crypto. I gotta start stop doing that They got three bank partners talk to us banks. So I want you to think about that in the comment section now. Let's move on to what I call clown news Because let's just be honest these There's two articles here a bitcoin etf And uh, venezuela taxing things. So the thing is like with this It just when people talk about the bitcoin etf like it's it's about it's around the corner man. I've been hearing this since 2017 and Hopefully it happens But in all honesty, it's not going to happen Because the sec won't just will not allow it to happen and hester pierce will come out and she'll trudge out and say this shouldn't happen That's for the sec I've been listening to her for three more three three years And it's still hasn't changed. So this is what we got I don't want to get anybody's hopes up sec requests comments and concerns about grayscale's spot bitcoin proposal The u.s. Secures and exchange commissioners has expressed concerns About how grayscale will head off share manipulation fraud and other possible issues In its proposal to convert its grayscale trust into a bitcoin spot etf The regulator as you see Fly the concerns it's concerned about the liquidity and transparency of bitcoin markets as well as the suitability of bitcoin As the underlying asset for the fund again, they're not going to approve this So don't hold your breath The sec has asked the public to comment on these issues and gives them 21 days to do so Within additional 14 days grayscale initially filed this application With the sec to convert its grayscale bitcoin trust into a spot etf in october In december the sec pushed it off By 45 days and then when it when it comes up when it's due Then they say well, let's let's just get some comments to 21 days and then after that they're going to deny it Over the past couple of months the agency has rejected spot etfs from wisdom tree cryptons skybridge and fidelity So they're not lightweight, but that's how it is. So I know It's just clownish to me. I just don't understand why they'd be like, oh, this is the greatest thing No, I don't think it's going to happen. Let me just think about the comment section. Let's finish up taxes venezuelans hit by new bitcoin tax of 20% The venezuelan government has approved a new tax bill aiming to collect up to 20% of taxes from crypto transactions according to local reports And also if you're from venezuela or a family venezuela, can you leave a comment in uh down below because When i'm looking at these things, I just don't think that that could be true Also, we did a story about uh china pushing the digital yuan Yesterday and a couple of people who have family in china or have lived in china Have said no, no, I mean they're pushing digital yuan, but it's not near as popular as they talk about so I think this is quite a clownish as well anyhow venezuelan's national assembly held a second discussion on thursday for a new draft bill targeting taxes on large financial transactions in crypto like bitcoin Government reportedly approved the bill last thursday requiring local firms and individuals to pay up to 20% for operations Carried out in crypto as well as foreign currencies such as the u.s. Dollar. So You're going to get taxed between two and 20% For any other currencies other than those issued by the republic of venezuela The venezuelan bolivar and the country's oil backed crypto el petro so the question I have was Why are they so why are they doing this? What do they want to do just use these types of uh fiat these currencies? Well, it doesn't make any sense to me because it says the initiative aims to incentivize the use the national currency Which lost 70 percent in value last year alone And shed nearly all of its value over the past decade. So yeah If you're going to look at some of the clownish stuff that's going on, that's it I'm like, hey, we don't want you to use crypto just use this this product that we we can give you and oh Yeah, it lost 70 percent of its value sounds like a great plan And that's it for clownish news. All right So, uh, look today that went a little bit longer It was a lot of stuff So that concludes the news part if you want to stick away for the q&a. I'd love to have you If not, thanks for stopping by. I appreciate it thumbs up subscribe all that good stuff And now if you've held your questions to the end, let's get to your questions. Thanks All righty This is a good question Do you think india is going to tax even if indians convert their bitcoin to usdt? Instead of indian rupees to avoid tax.  They know that there's so much different Crypto's and digital assets floating around and people are using it for transactions They want that money and even the story that we covered yesterday with russia saying, hey, we're going to tax you And they had figured out that on the low side Russians own about 24 billion dollars worth of crypto on the high side. It's like 215 billion so like Well, even if we catch you guys at 6 percent to 15 percent depending on where they're going to land They're going to make a lot of money and that's what the government wants to do They want to take money from you and put it into their treasury and things like that So do I think that you're going to get away around it? Hopefully for a while. I sure hope so but government has a funny way of finding out all the different things that we have and uh Tax live in tarot. So unfortunately that is what is but there's you have options There's different options out there Depending on where you want to move to like we just we just covered a story about portugal portugal is zero percent taxes Everybody from the eu if they want to they can move there People like me have to give up my citizenship citizenship and move there or even come to portorico I'm in guainabo that answers somebody's question And uh, there's zero percent capital gains tax, but there's a lot of requirements and time constraints. So i'm going to do I'm talking this forever. I'm going to do an updated video on portorico this week I need to do it this week And uh, talk to you about the things that I found out and some things are just straight up wrong. So Or yeah, someone says move to dubai. That's right move to dubai dubai also has the same thing sniff says Where is this? Can you dunk a basketball? I used to but i'm old now my knees chuck. So no Uh taxes are yes And yes, nuno says it right portugal still zero percent This i'm going to always snap to that's crazy. Yeah, it is crazy, but it's fun to put on the clown face, right? I like that one and then there's uh This is one of my favorite where everybody's like On us, isn't it? This is handsome me. Ah looks pretty good. No, this is my favorite right here. It's going to the moon It'll never go down And again, no way when everyone broke taking profits. So if uh, you're looking at the charts right now You're like, ah, I'll just let it ride. You can do that. I'm not giving you investment advice But at some point you maybe to like take a little bit of profits. That's what it is. Okay And let's see It's a good question the pool man Should come over here. Well, it's your top five coins except for bitcoin and eith left from no way Ah, I can't leave bitcoin and eith out Bitcoin eith they're always going to be there. They're they're like on my blue chip stocks uh beyond that I personally like chain link because I think everybody's an oracle I like layer one solutions. I don't really care so much, you know, which one's going to win one's going to win One's going to be second fiddle or third fiddle go down to salona avalanche even Tezos uh near phantom those other things And uh maddox polygon and maddox Polygon maddox is I think a game changer I've dumped a lot of money of that a long time ago and I think it's going to be well because Not just a layer two solution But just like polygon studios and how they pull these games and different organizations into the metaverse what they want to do I think it's great All banks people not all banks there's like some small banks and credit unions They really try to serve the community and the people that work in the banks are good people Which is that the policy that are that are set forth by the very top levels. That's where it becomes evil Evil ish I'll say Uh Moving back soon. We'll come on back also, uh Tomorrow shoot the Puerto Rico meetup is from 5 to 7 p.m. At done bars I'll be talking about that's on tomorrow's video and also I will be posting it in twitter Markey you didn't have to give me this but thank you. I appreciate it Markey's one of the og's in the space if you don't know Markey Markey knows That's right knees over toes. I love that program. I've done that program Actually, that's what saved my knees. It allows me to play valuable and speaking of which if anybody knows a place to play Viable on here in Puerto Rico, that'd be great. I used to play all the time. You played in college I was too short. That was a setter, but uh Yeah, everybody knows a place that hit me up on twitter What do you think of cadena? I think it went up massively. That's all I know That's it Did you clean your pool? No, I got a guy who comes here and cleans it for me That guy makes that guy does great work Not only that like when so I did this this show and there's a guy clean the pool This is off off a crypto, but it's it's it's an example of entrepreneurship that guy makes between Around $50 to clean the pool takes about 30 40 minutes or so and he does the whole row Of all these houses that are here So like I was thinking about I'm like, man, you know what so 50 bucks times eight.  You're looking at 12,000 13,000 five That guy makes pretty good money every month. I mean just for working five days a week so like never like I know like when I was when I was UPS and construction and all that people would kind of look down like oh you work with your hands This guy's make more money than doctor the lawyer sometimes. That's how it is I am I staked it for six months Just so you know Are you growing a beard? No, I'm just too lazy to shave today Tune world, right? What do you think I'd go fund me? I think what they did This was a great story actually and I should I was going to cover this but I didn't so There's this rally going on in Canada all the truckers and and they're like shutting down parts of the city in Canada to uh protest vaccine The vaccine mandates I don't want to get into in this channel because it's it's a lightning rod and There was a GoFundMe page starter for it and raised like I want to say like nine million or three million It was a lot of money and GoFundMe said we're not going to give you that money because there's too much Violence or they they claim something that was in their terms of conditions where they weren't going to pay out And they eventually they relinquished and they gave everybody their money back Which didn't really help the whole situation because that was the whole point So when people see this they're like wow, this is a centralized aspect. We don't like that part There's a I forgot the name of it tuli It's a it's a program or it's It's based on bitcoin and you can donate crypto And it's like the GoFundMe on the blockchain and it raised like three hundred thousand dollars Which is not near enough to what they had before but it's an option So I think when people see these things like wow this centralized stuff. Maybe isn't the greatest. So that's what we got pieter iris miss nailed it. What is your thoughts on Veritasium and reggie middleton's pattern being I have no idea what that is Uh veritasium, I believe was a game and everybody asked me about this everybody asked I don't know if it's a bot situation or what it is Uh, I can't really give you an answer because I don't know enough about it. I'll do some research and let you know How about that? Clowns are running the world Uh, let's see. Thank you. I appreciate that Uh No, you don't you have to speak Arabic if you want a citizen in Dubai. Well, maybe citizenship's a little bit different thing Did you Let me go down here What do I see storm max in 12 months? I see it's uh doing pretty well I like Simon you he's been around since 2014. Mind you and he's got a lot of uh, a lot of ec contacts will say I think he's gonna do pretty well now. I use it myself I just don't use it as much as I should and I really should get into it Any thoughts on ethereum price end of may mc ask that's a good question. So let me see here I'm gonna give you my 2022 price prediction Here we go so 2022 price prediction ethereum will be between three thousand one hundred dollars And three thousand two hundred and twenty five dollars in 2022 market. All right. That's what I got Uh, so I don't do The price predictions are ridiculous. Uh, I I'm not gonna do this anymore They're great for videos like if you want to mention this office stupid if you want to Get a lot of views just do a price prediction video do them all the time and people eat it up But it's really I think it's really bad because then people are like, oh, it's going to the moon and you don't get like that those types of uh How do I say this right those types of um teachings Where our education where people will say Now remember if you buy into this nothing goes up forever and figure a dollar cost average in try to dollar cost average out And just remember one thing and that is that nothing goes up forever So if you want to have some dry powder Yeah, you can't hold forever If you want to have those things. So that's what I try to make sure probabilities probabilities, okay Whoa James Cooper, this is the last question. This is a good one Rob, can you please explain why some coins only go to 30 or some go to 100 or some go to 10 000 This is the most loaded question you could possibly get Let me turn this off So here's the thing Why do some coins go up so much well some of it is because they are pump and dump schemes So just remember that So the things that go up pretty high you have to understand that some of these will not be around forever because they have Horrible they have no utility. They have bad tokenomics and the team is just a bunch of marketers and another reason is is Some and on the flips the exact opposite some coins some tokens and things will go up because they have They have done a ton of research They have assembled a fantastic team mostly developers They have real-world utility that solves a real problem and the tokenomics isn't Concentrated with a bunch of venture capitalists and people that will dump on you So just make sure you know about that And then in the middle, why does some make it and some don't it's the same thing as like Why do some restaurants that open up down the street from you make it and some that are you know Are like really close to you. They just don't make it It's because they can't execute and they can't scale And they don't have the right ingredients in place to make it small businesses shut down all the time I have failed at many a business before I actually made it. That's just how it is So a lot of these crypto projects as good as they may be will not make it Because for whatever reason like the things I just laid out before you And that is just the nature of the beast So you always want to take a look and be in the game and make sure that you're looking at those projects that again the utc What's the utility? What does it actually do to solve real problem? How solid is the team?  And I should actually and then of course the tokenomics so they're not dumping you but I should add one more And it isn't one that's very popular, but what is the marketing? How are they getting their message out there, right? Because as good as a restaurant is down the street if you don't hear about it It could it could have the greatest hamburger of all time But if you don't hear about it, you'll never get to it. It's the same thing of like, what's the best hamburger in your town? I don't know where you live, but I guarantee I know what it is. It's mcdonald's I didn't say the best hamburger. Well, I guess it is the best ever the most popular hamburger It's mcdonald's with a billion serving You know why because they have massive marketing and there's a mcdonald's in every corner And that's why it makes it as opposed to Jesse's burger down the street, which is awesome. That's it. So look, uh, that's it for today Thanks so much for stopping by if you like today's video Give it a thumbs up give it a like and all the good stuff consider subscribing and I'll see you on the next one. Thanks