Bitcoin ฿

History of Money

Barter

Goods *BECOME* Money Acceptable Durable Portable Scarce Divisible Recognizable

Gold Storage -> Paper Receipts England, 17 th 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

Bank Runs

Government Takes Over Banking

1:1 -> 1:2 -> 1: – Bank of England Monopoly 1913 – US Federal Reserve Monopoly

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 Rome 27AD – Augustus – Denarius 95% Silver 45 coins / pound Gold 27AD – Augustus – Denarius 95% Silver 45 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 Coin 60 coins / pound Gold 330AD – Constantine – 72 coins / pound Gold 210AD – Caracalla – Denarius 50% Silver 50 coins / pound Gold 268 AD – Denarius 0.5% Silver 268 AD – Denarius 0.5% Silver Same idea, different technology.

Ancient China -7 th Century (Tang Dynasty). Merchant receipts of deposit during. -13 th 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

Money Wasn’t Always Government Issued

Multiple Currencies – No Problem

Electronic Money EGold to 2009 $2 billion transactions / year (2008) Liberty Reserve 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

Decentralization & the Distributed Consensus Problem

2008 – Satoshi’s Paper

History & $ Price of 1 Bitcoin Oct 2008: Satoshi Paper Jan 2009: First wallets begin working Oct 2009: $1 = 1, BTC May 2010: Pizza sells for 10,000 Btc July 2010: MtGox Established July-Nov 2011: $32 -> $2 March 2013: Cyprus Crisis. $40 -> $260 -> $90 -> $120 May 2013: Forbes “Living On Bitcoin For A Week“ May 2013: First major VC investment in Bitcoin companies July 2013: Bitcoin Fund Oct 2013: Silk Road Shutdown Oct-Nov 2013: Chinese Demand. $120 -> $1200 -> $800 Dec 2013: China restricts banks from using Bitcoin Jan 2014: BitInstant CEO arrested Feb 2014: Apple Bans Bitcoin Apps Jun 2014: Apple allows Bitcoin Apps June 2014: Mt Gox Bankruptcy Sept 2014: Overstock.com accepts Btc

Market Capitalization Euro (M2): $16 Trillion Dollar (M2): $14 Trillion Ukraine (M2): $95 Billon Mongolia (M2): $5.1 Billion Georgia (M2): $4.8 Billion Bitcoin:$4.5 Billion Moldova (M2): $3.9 Billion Armenia (M2):$3.3 Billion Litecoin:$125 Million Sao Tome & Principe: $100Million

Bitcoins in the World

Bitcoin Bars

Kreuzberg, Berlin

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.

Public Transaction Transactions 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 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

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