1. Ryan Milbourne @RyanMilb
Bitcoin 101
Ryan Milbourne
@RyanMilb

2. Talk Outline
Origins
How it works
Why it matters

3. Origin
Satoshi Nakamoto

4. What is Bitcoin? Decentralized Consensus Mechanism Open source
Ledger of all transactions

5. Misc Facts
Only 21 Million
Bitcoin mining network 8 times faster than top 500 supercomputers
Bitcoin is Protocol

6. 1.Private Key
2.Public Key

7. Private key
E9 87 3D 79 C6 D8 7D C0 FB 6A F D A6 1F 20 BD 67 FC 23 3A A
Public Key
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

8. How Transactions Work

12. Raspberry Pi

13. Mining Network
Secures the network
Distributes new coins

15. Securing the Bitcoin Network

16. Notes on Mining:
1 block mined approx every 10 min
Last bitcoin mined in 2140
Transaction fee
Block Reward set at 25

17. Difficulty Self Adjusts every 2 weeks

19. Technical questions

20. Benefits of Bitcoin
Escape Capital Controls
Financial Freedom
Algorithmic Regulation

21. For Merchants
Lower Fees
No Charge backs
Less fraudulent transactions

22. Microtransactions
One Satoshi
Publishing
Fundraising

25. Empower Billions 1 Billion with access to:
International Markets
Banking services
More people have access to a cellphone than sanitation (U.N. Study)
Gets around obstacles of obtaining
a bank account

27. Disadvantages Volatility 51% attack Scalability
Regulated as a commodity with capital gains

28. Price over the past 2 years

29. ...Now on a logarithmic scale

32. Scalability Visa 2,000 Transactions per second Pay Pal 40-100 tps
Bitcoin 7 tps

34. MTGOX

35. Keeping Mt. Gox in Perspective
$8.9bn fine
Source: Baseline Scenario
State of Bitcoin Q2 2014

36. Regulation FEC Approved IRS released guidelines
SEC Approved Bitcoin backed ETF

37. BitLegal.io

38. BitPay’s $30m Round was the Largest Bitcoin VC Deal to Date
More than 30,000 total merchants
As of January 2014, adding more than 1,000 merchants to its network each week
Processing $1m in bitcoin payments every day
Processed more than $100m in bitcoin payments in 2013
Most recent VC round valued BitPay at $160m
State of Bitcoin Q2 2014

39. Key Bitcoin Adoption Metrics
Commerce
Jun-14
Jun-13
YoY Δ
Wallets
5,327,688
765,039 7x
Merchants
63,000
N/A
ATMs
103
Unique bitcoin addresses used per day
136,152
41,271 3x
Media
Mentions in mainstream media
9,500
2,163 4x
Technology
Network hash rate (billion/second)
111,194,683
162,269
685x
Github No. of updated repositories
12,365
676
18x
Investment
Bitcoin market capitalization ($bn)
8.3
1.0 8x
Industry
VC investment over last 12 months ($m)
200.7
17.1
12x
Number of VC-backed start-ups 49 7
State of Bitcoin Q2 2014

40. Bitcoin’s Price is Now on Yahoo Finance, Google Finance and Bloomberg
State of Bitcoin Q2 2014

41. How to get bitcoins
LocalBitcoins.com
Coinbase.com
Exchanges
ATMs

42. The Future Crypto 2.0 Services built on top of bitcoin Smart Contracts
Decentralized marketplaces

43. David Marcus, CEO of Paypal
“I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government’s currency does not hold value. It’s also a good investment vehicle if you have an appetite for risk. But it won’t be a currency until volatility slows down.”
David Marcus, CEO of Paypal

44. Thank you For more info: www.coindesk.com RyanTMilbourne@gmail.com
@RyanMilb