ATMIA Bitcoin Presentation-rvsd
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Transcript of ATMIA Bitcoin Presentation-rvsd
Only One Currency
There is only one currency to choose from as Consumers, Business Owners &
Payment Facilitators.
Competition in the Past
There were over 8,000 private institutions issuing currency in the US in 1860
What is Bitcoin ?
• Created by the mysterious Satoshi Nakamoto
• Cryptocurrency which stores value on your computer or server
• Quick & Worldwide P2P Transactions• Zero or Low Processing Fees• No central authority or banks managing
transations.
What is Bitcoin ?
• Issuance of Bitcoins is carried out by the network• Finite Set of Bitcoins
Around Year 2140 all bitcoins will be issued for a total of 21 Million Bitcoins in circulation
• Not one individual, company or government controls Bitcoin & everyone can take part
• Bought via Money Exchanges• 100,000 Wallets in Jan 2013
500,000 Wallets in Nov 20131,000,000 Wallets in Jan 2014
• 12,338,775 BTC = 8,227,248,394 USD
Local NYC Businesses Accepting Bitcoin
• Bars & RestaurantsEVROld Man HustleO’Crepes
• MedicalDr. Steven Schram Chiropractor
• Computer RepairXCubicle
• Real Estate BrokerageBOND New York
Why are people using Bitcoin ?
• Limited Privacy - 56% of Americans according to the PEW research center are more concerned with Privacy than Terrorism,70% believe government is using the data it collects for “Reasons other than Terrorism” (July 2013)
• Inflation Concerns & Store of Value – In the last 20 years the Government & the Federal Reserve have not been doing their jobs well.For Example: $1.00 in 1993 has the same buying power of $1.62 today
The Decline of the Dollar
Since the Federal Reserve started operations in 1918, $1.00 in 1914 has the
same buying power of $22.96 today
Milton Friedman Economist
Milton Friedman, Economist that won the Nobel Peace Prize argued that,
“No reason currently to prohibit banks or other groups from issuing hand-to-hand currency”
What the Payment Space is doing
• Bitpay.com has 15,500 approved merchants in 200 countries
• Bitcoin ATM’s by Lamassu Bitcoin Ventures,Genesis Coin/Genesis1 and the RoboCoin
• Bitcoin Fund is the first Bitcoin hedge fund launched by Exante in Malta
• Winklevoss Brothers investing heavily into Bitcoins and Bitcoin Companies
John LewSecretary of the Treasury
In an interview at the January 2014 World Economic Forum in Davros, Switerzerland,
US Treasure Secretary Jack Lew called bitcoin a “Phenomenon” and said
“From the governments perspective, we have to make sure [Bitcoin] does not become avenue to funding illegal activities or to funding activities that have malign purposes like terrorist activities”
Ben BernankeFormer US Federal Reserve Chairman
In a letter Ben Bernanke wrote to congress, while he was Chairman, regarding Bitcoin,
“[Bitcoin] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”
On the Regulatory Front
• Mar. 18 2013; FinCEN (Financial Crimes Enforcement Network) issued guidance that applied the Bank Secrecy Act (BSA) to Bitcoin Administrators and Exchangers. - Resulted in the closure of at least 3 exchanges in the US. (2)
- Also states a user of virtual currency is not subject to registration, reporting and recordkeeping regulations (3)
• Aug. 17, 2013; US Department of Homeland Security seized 2.9 million from Mt.Gox’s Dwolla and 2.1 million from their Wells Fargo account for failing to register as a money transmitting company (4)
• Aug. 19 2013; Germany recognizes Bitcoin as “Private Money” (5)
• 3rd & 4th 2013 Quarter; The Senate held hearings on Bitcoin• Jan. 28th & 29th 2014; New York State held hearings on how to
structure a possible “Bit License”• Jan. 28th 2014; The CEO of BitInstant, a Bitcoin exchange, was
arrested and charged with laundering money.