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Transcript of Bitcoin
Bitcoin
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History of Money
Barter
Goods *BECOME* Money
• Acceptable• Durable• Portable• Scarce• Divisible• Recognizable
Gold Storage -> Paper Receipts
England, 17th Century
• Safety for travelers
• Charles I’s Royal Mint loan (1640)
• Goldsmiths• Fungibility• Lending
Bank of England Gold Receipts
1:1 -> 1:2 -> 1:10
1:1 -> 1:2 -> 1:10
1:1 -> 1:2 -> 1:10
Bank Runs
Government Takes Over Banking
1:1 -> 1:2 -> 1:10
1694 – Bank of England Monopoly1913 – US Federal Reserve Monopoly
1:1 -> 1:2 -> 1:10
1:1 -> 1:2 -> 1:10
1971 – Executive Order 11615
Who Will be the Aristocrats?
Producers vs Central Bank Cronies
Bad Money -> Bad Culture
Ancient Rome27AD – Augustus – Denarius 95% Silver45 coins / pound Gold
117AD – Trajan – Denarius 85% Silver
180AD – Marcus Aurelius – Danarius 75% Silver
200AD – Septimius – Denarius 60% Silver
230AD – 72 coins / pound Gold
300AD – Diocletian – Argenteus Silver Coin60 coins / pound Gold
330AD – Constantine – 72 coins / pound Gold
210AD – Caracalla – Denarius 50% Silver50 coins / pound Gold
268 AD – Denarius 0.5% Silver
Same idea, different technology.
Ancient China
- 7th Century (Tang Dynasty). Merchant receipts of deposit during.
- 13th Century (Yuan Dynasty). Marco Polo: "How the Great Kaan Causeth the Bark of Trees, Made into Something Like Paper, to Pass for Money All Over his Country."
Enforcing Government Money
Enforcing Government Money
Enforcing Government Money
Enforcing Government Money
Enforcing Government Money
Money Wasn’t Always Government Issued
Multiple Currencies – No Problem
Electronic Money• EGold -- 1996 to 2009$2 billion transactions / year (2008)
• Liberty Reserve -- 2006 to 2013“Liberty Dollars” “Liberty Euros”~ $0.9 billion transactions /year
• Also, Goldmoney.com, e-Bullion.com, CrowneGold.com, Pecunix.com, INTgold.com.
Peer to Peer
Peer to Peer
Decentralization & the Distributed Consensus Problem
2008 – Satoshi’s Paper
History & $ Price of 1 BitcoinOct 2008: Satoshi PaperJan 2009: First wallets begin workingOct 2009: $1 = 1,309.03 BTCMay 2010: Pizza sells for 10,000 BtcJuly 2010: MtGox EstablishedJuly-Nov 2011: $32 -> $2March 2013: Cyprus Crisis. $40 -> $260 -> $90 -> $120May 2013: Forbes “Living On Bitcoin For A Week“May 2013: First major VC investment in Bitcoin companiesJuly 2013: Bitcoin FundOct 2013: Silk Road ShutdownOct-Nov 2013: Chinese Demand. $120 -> $1200 -> $800Dec 2013: China restricts banks from using BitcoinJan 2014: BitInstant CEO arrestedFeb 2014: Apple Bans Bitcoin AppsJun 2014: Apple allows Bitcoin AppsJune 2014: Mt Gox BankruptcySept 2014: Overstock.com accepts Btc
Market CapitalizationEuro (M2): $16 TrillionDollar (M2): $14 Trillion
Ukraine (M2): $95 Billon
Mongolia (M2): $5.1 BillionGeorgia (M2): $4.8 Billion
Bitcoin: $4.5 Billion
Moldova (M2): $3.9 BillionArmenia (M2): $3.3 Billion
Litecoin: $125 MillionSao Tome & Principe: $100Million
Bitcoins in the World
Bitcoin Bars
Kreuzberg, Berlin
http://bitcoinsinberlin.com
New York Open Air Bitcoin Exchange
A taxi in Kenya
Bctip.org
Bitcoin ATM in Kyiv
Where to get Bitcoins
Bitcoin Technology
• Send Money Anywhere• For FREE• Instantly• Anonymously*
Post Office vs. Email
Public TransactionTransactions aren’t actually encoded, in fact, they’re public.
Bitcoin Mining
Crypto is used to Authenticate transaction – prevent double spending, false ownership.
Bitcoin Mining
Bitcoin Mining
Bitcoin Mining
Bitcoin Mining
Bitcoin Mining Hash Rate
Mining Pools
51% Attack?
Alt-Coins
“More powerful than the tread of mighty armies is an idea whose time has come.” ~ Victor Hugo
??? vs. Bitcoin
Disruptive technology
Satoshi’s Motivation?
Headline embedded in genesis block:
"Chancellor on brink of second bailout for banks"January 3, 2009, Times of London.
Other Uses of Decentralized Consensus Technology
Types of Bitcoin Businesses- Normal Businesses Adopting New Payment Systems
- Merchant Services (BitPay)
- Exchanges (Coinbase, BitStamp, Kuna)
- Wallet Companies
- Consultants
- Smart Contract / Digital Property Innovators(Master Coin vs Ethereum)
- Miners
- Mining equipment manufacturing / sales
End.
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