WARNING
The following presentation should be
considered ฿ullshit. The presenters are
not financial advisers. Please consult a
professional before investing your money
in Bitcoin or any other money laundering
scheme.
FBI
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WARNING
One of the presenters is a hardcore
capitalist and doesn’t like change, the
other is more reasonable.
I’ll be presenting the facts and Colin will
be presenting the ฿ullshit.
FBI
bitcoin: We can do better
• Increase security while simplifying infrastructure overhead
• Reduce transaction costs
• Make transactions as fast as the internet
• Remove government from money supply
• Stabilize money supply to address inflation
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Satoshi Nakamoto
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bitcoin Quick Facts
• ~10million BTC in existence
• Market Price: $11.72 USD
• Market Cap: $110 million USD
• Transaction Volume: $2,800,000 USD / day
• Total miners revenue: $80,000 USD / day
Current Difficulty
Miner SHA-256
TX
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Ref ID
nonce
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Miner
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Current Difficulty
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Miner
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Current Difficulty
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Miner
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Current Difficulty
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Miner
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Current Difficulty
We have a winner...
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Miner
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ef ID
nonce
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Newly minted block
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Why mining?
• The only way new BTC enter circulation
• Difficulty is adjusted to ensure 1 block / 10 minutes
• Confirms transactions
• Prevents double spending
• Nakamoto compared this process to gold miners expending
resources to add gold to circulation.
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What’s in it for miners?
• 50 BTCs for each discovered block (declining over time)
• Transaction fees paid by users
How is it doing?
• Increase security while simplifying infrastructure overhead
• Reduce transaction costs
• Make transactions as fast as the internet
• Remove government from money supply
• Cap money supply to address inflation
A+
A
A
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Governance is the byproduct of
government monetary policy
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How is it doing?
• Increase security while simplifying infrastructure overhead
• Reduce transaction costs
• Make transactions as fast as the internet
• Remove government from money supply
• Cap money supply to address inflation
A+
A
A
C+
?
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caping money supply is
an interesting idea ...
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... but, inflation and money supply
are not real problems
Last 30 years of data:
inflation is under control
-14.4%
-10.8%
-7.2%
-3.6%
0%
3.6%
7.2%
10.8%
14.4%
18%
1914 1920 1926 1932 1938 1944 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 2010
% Change CPI
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How is it doing?
• Increase security while simplifying infrastructure overhead
• Reduce transaction costs
• Make transactions as fast as the internet
• Remove government from money supply
• Cap money supply to address inflation
A+
A
A
F
F
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฿ bitcoin: crossing the chasm
• Growth: uncapped potential for money supply
• Governance: don’t let the bad guys win
• Government: or algorithms that can stimulate a currency
• Greenback: technology for daily adoption
Early Adopters Pragmatists Conservatives Laggards
How do I get my own bitcoins?
• Mine them yourself
• Buy them at an exchange:
• http://bitcoincharts.com/ - 50+ active markets
• I use https://www.cavirtex.com/
• Buy them at Wallmart, 7-11 !
• 700,000 locations - bitinstant.com/cashpayment.com