฿

Bitcoin Wallet

Bitcoin Wallet - receive

Advertising for Bitcoins 

Bitcoin Wallet - send

Barter

Goods *BECOME* Money
• Acceptable
• Durable
• Portable
• Scarce
• Divisible
• Recognizable
Peacefully and voluntarily, markets choose money.

Gold Storage -> Paper Receipts
England, 17 th Century

1:1 -> 1:2 -> 1:10

1:1 -> 1:2 -> 1:9

1:1 -> 1:2 -> 1:10
1694 – The Bank of England

Fraud Limited by Bank Runs
This was a *good* thing. Bad banks failed. Responsible banks increased their market share. Nevertheless, the government decided to “protect” us . . . .

Government Takes over Banking to
“Protect” Citizens

1:1 -> 1:2 -> 1:10
1913 – US Federal Reserve

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 Rome
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
210AD – Caracalla –
Denarius 50% Silver
50 coins / pound Gold
300AD – Diocletian –
Argenteus Silver Coin
60 coins / pound Gold
268 AD –
Denarius 0.5% Silver
330AD – Constantine –
72 coins / pound Gold
Same idea, different technology.

Enforcing Government Money

Enforcing Government Money

Enforcing Government Money

Enforcing Government Money

Money Wasn’t Always
Government Issued

Multiple Currencies – No Problem

Peer to Peer

Peer to Peer
Each wallet keeps a record of ALL Bitcoin transactions. Yes, all of them.

Why is that important?
Peer to Peer

• Send Money Anywhere
• For FREE
• Instantly
• Anonymously*

• Acceptable
• Durable
• Portable
• Scarce
• Divisible
• Recognizable
Goods Money

Bitcoin Bars

Kreuzberg, Berlin http://bitcoinsinberlin.com

New York Open Air Bitcoin Exchange

Bctip.org

From Feb 27, 2013
(uses BITPAY)
Bitcoin Store

History of Bitcoin
• October 2008 – Bitcoin design paper – Satoshi Nakamoto
• January 2009 – Bitcoin v0.1 announced
• May 2010 – Pizza purchased for 10,000 BTC
• July 2010 – MtGox established

History of Bitcoin ฿ /$

History of Bitcoin ฿ /$

History of Bitcoin – Market Cap. ($)

History of Bitcoin – Client Downloads as of 13/05

History of Bitcoin – Client Downloads
07/05 to 13/05

Where to get Bitcoins
(Or just get paid in Bitcoins)

Btc-e.com

Crypto Currency
What does this mean?

Public Transaction
Transactions aren’t actually encoded, in fact, they’re public.

Public Transaction

Bitcoin Mining
Crypto is used to Authenticate transaction – prevent double spending, false ownership.

Bitcoin Mining

Bitcoin Mining

Bitcoin Mining

Bitcoin Mining

51% Attack?

“More powerful than the tread of mighty armies is an idea whose time has come.” ~ Victor Hugo

Alternative Coins
MAJOR:
-BTC Bitcoin - first, strongest, most accepted, most mined, high volume market, a true currency
The idea is out.
-NMC Namecoin merged mined with BTC, used for alternative p2p domain system
-PPC PPcoin Proof Of Stake [very innovative, low energy ] , compatibile with BTC miners
MINOR:
-TRC Terracoin based on BTC, fast difficulty adjustment, initialy flaved but corrected
-DVC Devcoin merged mined with BTC, 90% of generation goes to foundation, 10% to miners
-IXC IxCoin merged mined with BTC, premined 580k coins but still alive
-NVC NovaCoin - scrypt hashing[like LTC] , proof of stake [like PPC] , controversial start is found and exploited in
Bitcoin, a better version will emerge within 24
-FTC FeatherCoin- LTC clone with 4x more coins.
CANDIDATES: probably within 1 hour.
-BTE Bytecoin- the 1:1 bitcoin copy, nothing changed. extremally high starting hype/hashrate.
-BQC BBQCoin- forgotten after 51% attack on launch, now revived and active. super fast version of LTC.
-MNC Mincoin- similar to BBQ, but very bad launch [no binaries + 25000% superblocks] giving 10% of all coins to insiders.
-CNC CHNCoin- similar to BBQ, announced on chinese forum first, very big hashrate.
-BTB BitBar- scarce version of NovaCoin. low starting diff like FTC and CNC, but quick adjustment.
-JKC Junkcoin- started as a joke, but now working ok. low starting diff and slow retarget like BTE, FTC, MNC, CNC
-YAC YACoin- Yet Another altCoin. NovaCoin fork, with modified hashing - for now CPU-ONLY
-RYC Royalcoin- Another LTC clone, starting with low diff and superblocks like MNC ...
-FRK Franko- Another faster LTC, again 0.00... starting diff. scarce.
DEAD / DYING :
-FTC Gamecoin- yes, FTC. clone so bad it was 51%'ed the first day.
-LQC Liquidcoin made to be very fast at constant difficulty, dead [pool closed, exchange closed]
-SC Solidcoin - dying (10-20% fee), designed to improove IxCoin, hard to be neutral on this one, 1.0 was a premine scam, 2.0 says BTC is pyramid scheme.

Post Office vs. Email

??? vs. Bitcoin
Disruptive technology

Technology Adoption Trend

Technology Adoption Trend

Satoshi’s Motivation?
Headline embedded in genesis block:
"
Chancellor on brink of second bailout for banks
"
January 3, 2009, Times of London.

End.
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