eday 2013 - jon matonis - bitcoin
DESCRIPTION
TRANSCRIPT
Jon MatonisBitcoin Foundation
Giant Stones Of Yap
2
Search For Extraterrestrial Intelligence (SETI)
3
Bitcoin Network Computational Power
4
The War On Cash – What’s It All About?
5
The War On Cash – What’s It All About?
6
Global financial surveillance Using money for identity tracking Traceability of all personal
transactions Absolute efficiency in tax collection Blockading and confiscating
payments Elimination of informal or grey
economy
Paper Cash And Bitcoin Are Similar
7
User-defined privacy (anonymity) Untraceable (unlinked from source) Irrevocable (bearer nature)
Precursors To Bitcoin
Hashcash (1997) Adam Back Proof-of-work system to limit email spam SHA-1 hash of the header
B-money (1998) Wei Dai Public keys identify pseudonyms Broadcast solution to computational problem Arbitrator and fine schedule Broadcasted subset account servers with bail
BitGold (2001-2005) Nick Szabo Public challenge string of bits Client puzzle functions Securely timestamped Distributed property title registry solved double spending
8
Bitcoin Is A Reaction To...
Dominant legacy infrastructure Centralised monetary authority Diminishing financial privacy
9
Bitcoin Merchant Benefits
10
Extend acceptance to countries not reached by Visa, MasterCard, and PayPal (60+)
Provide payment method for the unbanked
No disallowed merchant categories codes (MCCs)
Not subject to payments embargo Eliminate chargeback and fraud risk Processing fees approaching zero Near immediacy of settlement
Bitcoin Is A Safe Alternative
11
Summary Of Bitcoin Key Features
12
First mover network advantage Independent unit of value with fixed supply Decentralized nature inhibits shutdown Financial intermediary not required Dramatically lower fees Brings the unbanked into the monetary
system Cannot be politically manipulated Borders and capital controls are irrelevant Reduces government ability to fund itself
What’s not to love?
De-Central Banks And Their Impact
13
Impact On Monetary Policy
14
Fractional reserve banking becomes nearly impossible without the emergence of money substitutes
Opportunistic and unrestrained inflation gives way to natural deflation
Interest rates respond more to the risk of the lending activity rather than central bank open market operations
Reduction in detrimental business cycles
Impact On Fiscal Policy
15
Governments gradually shift from taxing income to taxing consumption
Registration of exchanges and merchants facilitate higher consumption taxes
Government spending becomes constrained by actual revenue raised which means that unpopular expenditures will be difficult to fund
Transform Global Transfer Networks
16
Transform Global Transfer Networks
17
Transform Asset Management Industry
18
Transform Retail Payments
19
Transform Retail Payments
20
Bitcoin Market Capitalization
21
Quotes From Others
22
“Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.” -Nassim Taleb
“I think the fact that within the bitcoin universe an algorithm replaces the functions of [the government]… is actually pretty cool.” -Al Gore
“I think [bitcoin] is a technical tour de force.” -Bill Gates
My Quote
“Bitcoin is to legal tender
as BitTorrents are to copyrights”
23
