The world’s first decentralized digital currency Meni Rosenfeld Bitcoil 30/7/2013Written by Meni Rosenfeld1

Bitcoin is a currency “Money can be exchanged for goods and services” Currency facilitates the trade of one good for another A good currency must be: Scarce, portable, durable, fungible, divisible, current Value = equilibrium between supply and demand Total value of a currency is proportional to total trade using it Value per unit = Total value / Number of units 30/7/2013Written by Meni Rosenfeld2

Bitcoin is digital Ownership of bitcoins is digital information Typically used with a computer and the internet Based on cryptography 30/7/2013Written by Meni Rosenfeld3

Bitcoin is decentralized There is no company “Bitcoin Ltd.” There is no central issuer or controller Based on a public protocol and free software Run by a peer-to-peer network of computers Multiple parties are each “doing their own thing” 30/7/2013Written by Meni Rosenfeld4

Bitcoin is the first! Plenty of physical currencies Gold, silver, seashells, rocks… Plenty of centralized digital currencies PayPal, WebMoney, e-gold, DigiCash, LR, WoW gold, SLL, EVE isk… Bitcoin is the world’s first decentralized digital currency Invented in 2008 by “Satoshi Nakamoto” (pseudonym) 30/7/2013Written by Meni Rosenfeld5

Why? No need for 3 rd party Easy to send and receive money Almost no fees No single point of failure Secure Limited supply – no built-in long-term monetary and price inflation No chargebacks International Usable by weak/small countries Pseudonymous Public ledger Advanced applications 30/7/2013Written by Meni Rosenfeld6

Inflation schedule 30/7/2013Written by Meni Rosenfeld7

Bitcoin adoption (July 2013) Bitcoin “Market capitalization”: $1.2B Users: 500,000 Bitcoin-accepting businesses: ~7000, including Wordpress, Reddit, Mega, Namecheap, OkCupid Freelancers, server hosting, software, books, clothing, video games, electronics, groceries, car accessories, ad networks, restaurants… Accepting donations: FSF, Wikileaks, Internet Archive, EFF, MIRI, xkcd… Academic research: WIS, Microsoft, Cornell, ETH Zurich… 30/7/2013Written by Meni Rosenfeld8

Historic price chart (log scale) 30/7/2013Written by Meni Rosenfeld9

Bitcoin software Full software Bitcoin-qt - Lightweight client Multibit Hybrid web wallet My Wallet - Android App BitcoinSpinner 30/7/2013Written by Meni Rosenfeld10

How to use? Install open-source client software Software generates “addresses”, which are like bank account numbers (e.g. 1BBsbEq8Q29JpQr4jygjPof7F7uphqyUCQ ) To receive bitcoins, let the sender know your address To send bitcoins, specify receiving address and amount, and click “send” 30/7/2013Written by Meni Rosenfeld11

How to use? 30/7/2013Written by Meni Rosenfeld12

Bitcoin in Israel Community site: Facebook: bitcoin.il, ביטקוין ישראלי IRC: #bitcoin-il at Freenode Meetup: Google Group - Bitcoin Israel Hebrew forum section Bitcoin-accepting businesses: ~40 Including restaurants and other physical locations 30/7/2013Written by Meni Rosenfeld13

Predictions Exchange rate hits $300 by end of 2013 Bitcoin is mainstream by 2020 Exchange rate: $10K Most people have heard about it Many shops accept it Bitcoin is ubiquitous by 2030 Exchange rate: $100K Most shops accept it Competes with major world currencies 30/7/2013Written by Meni Rosenfeld14

Questions? 30/7/2013Written by Meni Rosenfeld15

Thank you Meni Rosenfeld 1DdrvajpK221W9dTzo5cLoxMnaxu859QN6 30/7/2013Written by Meni Rosenfeld16