The Bitcoin Journey

There is a reason why the journey into Bitcoin is often described as "falling down the rabbit hole." Bitcoin combines cryptography, game theory, computer science, distributed systems, economics, physics, and a multitude of other disciplines into a living, breathing ecosystem. It is interdisciplinary in nature, offering many entry-points down the rabbit hole. Whether your background is in computer science, economics, trading, or something else completely, understanding Bitcoin is an ongoing journey that we undertake both collectively and individually. How this journey might look like and how it relates to the cyclical nature of Bitcoin will be explored in this talk.

Transcript

1. Gigi · @dergigi The Bitcoin Journey
3. Part One A Bitcoiner’s Journey
4. 1. This will never work. 2. Why isn’t it dead yet? 3. Oh, this is interesting… 4. 5. 6. Getting into Bitcoin
6. Source: Unchained Capital (2017)
7. Source: BlockTower, Ari Paul (May 2018)
8. The Rabbit Hole
9. … has many entries The Rabbit Hole … … … … …
10. The Rabbit Hole … is a journey 2 4 3 1 …
11. The Rabbit Hole “All roads lead to Bitcoin.”
12. Part Two Bitcoin’s Journey
13. 0 1 Stage n: Bitcoin exists.
14. 0 1¢ Stage n: Bitcoin exists.
15. 0 1¢ Stage N: bitcoin has value.
16. NgU Technology N > 0
17. Source: Saifedean Ammous (2018) 1 2 3 4 5 Demand for store of value Price rises Mining becomes more profitable More processing power goes to mining Network becomes more secure
18. –Satoshi Nakamoto “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.”
20. 1 2 3 4
21. 1 2 3 4 1. Proof of Concept 2. Payments 3. E-Gold 4. Financial Asset 5. ? Source: Bitcoin Stock-to-Flow Cross Asset Model by Plan B (2020)
22. Source: Visions of Bitcoin by Hasu and Nic Carter (2018)
23. Source: Bitcoin Stock-to-Flow Cross Asset Model by Plan B (2020)
24. Source: Bitcoin Stock-to-Flow Cross Asset Model by Plan B (2020)
25. Source: Satoshi Rides the Waves of Change by hodl.rocks
26. Source: HODL Waves by Unchained Capital (2018)
27. Source: HODL Waves by Unchained Capital (2020) HODL of 2018
28. Source: Don't Buy Bitcoin. It's Going To Crash by Alex Millar (2015) 6¢ → 36¢ → 58¢ → $29 → $13 → $213 → $130 → $1.100 →
29. Bitcoin = Cyclical
31. 1 2 3 4 5 Number Go Up Mining = Profit Trust & usage go up Security & Price Security go up # of miners go up
32. 1 2 3 4 5 Number Go Up Media Hype New Wave of People Some “get it” and become bitcoiners More development, more education, more HODL. Price & Adoption
33. 1 2 3 4 5 Improvement proposed Improvement discussed PR opened PR merged New version released Development
34. Cycles in Bitcoin • Security • Price • Adoption • Development • Mining • Difficulty Adjustment • Reward Eras (Halving) • …
35. Part Three Circling Around a Schelling Point
36. The Rabbit Hole “All roads lead to Bitcoin.”
37. The Rabbit Hole … is a journey 2 4 3 1 …
38. 2 4 3 1 The Rabbit Hole 5 … a personal journey, different for everyone
39. 2 4 3 1 The Rabbit Hole 5 … is circular!
40. 2 1 3 4 5
41. Bitcoin = Consensus
42. 1 2 3 4 5 Investing / Trading Economics Game Theory Cryptography Computer Science Getting Into Bitcoin
43. 1 2 3 4 5 Bought some Look more into it Understanding++ Go all-in! Heard of it Coming Full Circle Amnesia induced by boating accident
44. If Bitcoin is successful, it will disappear. If Bitcoin is successful, bitcoiners will disappear.
46. ? dergigi.com/contact 21Lessons.com
47. BONUS SLIDES
48. Main Idea Very abstractly speaking.
49. 1 2 3 4 5 Bought some Look more into it Understanding++ Go all-in! Heard of it Coming Full Circle Boating accident
50. Mining 1 2 3 4 5 Bundle txs in block Verify txs Add hash of prev. block header Solve PoW Propagate
 new block
52. Bitcoin = Mirror
53. “Knowledge is a mirror, and for the first time in my life, I was allowed to see who I was, and who I might become.” Bitcoin = Mirror
54. Religion = Meme = Idea 1 2 3 4 5 Education Religion FinTech Idea Tech Financial Social Cult * * Code Investing