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Bitcoin Take 2

Avatar for thoschmidt thoschmidt
December 08, 2012
130

Bitcoin Take 2

Avatar for thoschmidt

thoschmidt

December 08, 2012

Transcript

  1. The Rise and Ethics of Bitcoin John Yang-Samataro April Yu

    Anthony Maniero Tom Schmidt Saturday, December 8, 12
  2. Bitcoin is a decentralized digital currency that is currently the

    largest alternative non-fiat currency in the world with a market cap of over 140 millions USD at the time of this writing and sustained by a distributed computing peer-to-peer network of machines Saturday, December 8, 12
  3. Bitcoin is a decentralized digital currency that is currently the

    largest alternative non-fiat currency in the world with a market cap of over 140 millions USD at the time of this writing and sustained by a distributed computing peer-to-peer network of machines Saturday, December 8, 12
  4. (a) General definition Except as otherwise provided in this subtitle,

    gross income means all income from whatever source derived, including (but not limited to) the following items: (1) Compensation for services, including fees, commissions, fringe benefits, and similar items; (2) Gross income derived from business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments; (9) Annuities; (10) Income from life insurance and endowment contracts; (11) Pensions; (12) Income from discharge of indebtedness; (13) Distributive share of partnership gross income; (14) Income in respect of a decedent; and (15) Income from an interest in an estate or trust. US Tax Code Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, § 61 (a) Saturday, December 8, 12
  5. (a) General definition Except as otherwise provided in this subtitle,

    gross income means all income from whatever source derived, including (but not limited to) the following items: (1) Compensation for services, including fees, commissions, fringe benefits, and similar items; (2) Gross income derived from business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments; (9) Annuities; (10) Income from life insurance and endowment contracts; (11) Pensions; (12) Income from discharge of indebtedness; (13) Distributive share of partnership gross income; (14) Income in respect of a decedent; and (15) Income from an interest in an estate or trust. US Tax Code Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, § 61 (a) Saturday, December 8, 12
  6. (a) General definition Except as otherwise provided in this subtitle,

    gross income means all income from whatever source derived, including (but not limited to) the following items: (1) Compensation for services, including fees, commissions, fringe benefits, and similar items; (2) Gross income derived from business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments; (9) Annuities; (10) Income from life insurance and endowment contracts; (11) Pensions; (12) Income from discharge of indebtedness; (13) Distributive share of partnership gross income; (14) Income in respect of a decedent; and (15) Income from an interest in an estate or trust. US Tax Code Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, § 61 (a) But how? Saturday, December 8, 12
  7. Old Currencies “suffer from the inherent weaknesses of the trust

    based model” New Currencies “electronic payment system based on cryptographic proof instead of trust” Saturday, December 8, 12
  8. Satoshi Nakamoto publishes Bitcoin paper 11/1/2008 Genesis block mined by

    Nakamoto 1/3/2009 Bitcoin surges to almost $30 6/2011 Saturday, December 8, 12
  9. No inconvenient paper cash No anonymous transactions No untraceable transactions

    No grey economy No missing taxes Saturday, December 8, 12
  10. Data Breaches If a wallet is stolen, all currency is

    stolen If a wallet is lost, all currency is lost Saturday, December 8, 12
  11. How does this affect a company’s promise to its users?

    Only disclosure and usurpation are issues, not deception or disruption Saturday, December 8, 12
  12. Silk Road Only packages are traceable Unblockable on Tor Used

    to bypass drug and free speech bans Saturday, December 8, 12
  13. Should Bitcoins be seen as a paraphernalia? lighters, rolled up

    currency, razor blades, credit cards, and spoons have all been used to prosecute people Saturday, December 8, 12
  14. Gambling Used to bypass U.S. ban on online gambling Only

    a few sites accept Bitcoins Saturday, December 8, 12
  15. Gambling Used to bypass U.S. ban on online gambling Only

    a few sites accept Bitcoins Why? Saturday, December 8, 12
  16. Once currency is converted to Bitcoin, it is highly divisible

    and untraceable Saturday, December 8, 12
  17. Once currency is converted to Bitcoin, it is highly divisible

    and untraceable Ripe for criminal activity Saturday, December 8, 12
  18. Bitcoin can help the grey market stay viable in the

    digital age Saturday, December 8, 12
  19. Grey Market $10 Trillion in legal, but unregulated activity Could

    it disappear if all cash goes digital? Saturday, December 8, 12
  20. U.S. Constitution The Congress shall have Power To lay and

    collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; US Const. art. I, sec. 8 Saturday, December 8, 12
  21. U.S. Constitution The Congress shall have Power To lay and

    collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States; US Const. art. I, sec. 8 Saturday, December 8, 12
  22. European Central Bank 3 Kinds of Currencies Completely digital. No

    exchange with fiat currency Saturday, December 8, 12
  23. European Central Bank 3 Kinds of Currencies Completely digital. No

    exchange with fiat currency Currency can be purchased with fiat currency. Cannot be easily withdrawn. Saturday, December 8, 12
  24. European Central Bank 3 Kinds of Currencies Completely digital. No

    exchange with fiat currency Currency can be purchased with fiat currency. Cannot be easily withdrawn. Currency facilitates two way exchanges with fiat currencies Saturday, December 8, 12
  25. European Central Bank 3 Kinds of Currencies Completely digital. No

    exchange with fiat currency Currency can be purchased with fiat currency. Cannot be easily withdrawn. Currency facilitates two way exchanges with fiat currencies Saturday, December 8, 12
  26. What can the government do? Regulate exchanges Regulate larger merchants

    Not accept it as legal tender Saturday, December 8, 12
  27. What should the government do? Don’t intervene unless there is

    a market failure Shut down banks for money laundering Saturday, December 8, 12
  28. Bitcoin addresses many of the largest issues in our society...

    ...but it’s still in beta Saturday, December 8, 12
  29. If Bitcoin succeeds, you need to know about it If

    Bitcoin fails, you need to learn from it Saturday, December 8, 12
  30. What policies are needed for new technology? What are the

    ethical implications of distributed networks? Saturday, December 8, 12
  31. What policies are needed for new technology? What are the

    ethical implications of distributed networks? How important are privacy and anonymity? Saturday, December 8, 12