Bitcoin and

Payment InnovationKurt Thams

@thams

Visible because of huge growth

Appreciated 36,000 percent in 2.5 years

Total value of coins: $1.2 billion

Open systems are attractive

Precisely because they are open

First wave of systems restate the functions of fiat money

Currency Exchanges

Securities Markets

Gambling Facilities

Second wave is infrastructure

Online Merchant Services

Vaults

Other security measures

Where would Bitcoin thrive first?

Where other payment infrastructure is lacking

Where money controls or debasement hinder commerce

Will Bitcoin be adopted?

Will it take root quickly enough to gain traction?

Payment System Taxonomy

Push or Pull?

Real-time?

Anonymous?

What is the trust model?

Bitcoin is:

Push

Real-time

Semi-anonymous

No trusted parties

Two-sides problem

Merchants needs payers or they won’t participate

Payers need merchants or they won’t participate

What happens when:

Payments are nearly-free?

Payments are irreversible?

Payments are instant?