the world’s first decentralized digital currency meni rosenfeld bitcoil 30/7/2013written by meni...
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Written by Meni Rosenfeld 1
BitcoinThe world’s first decentralized digital currency
Meni RosenfeldBitcoil
30/7/2013
Written by Meni Rosenfeld 2
Bitcoin is a currency“Money can be exchanged for goods and
services”Currency facilitates the trade of one good for another
A good currency must be:Scarce, portable, durable, fungible, divisible, current
Value = equilibrium between supply and demandTotal value of a currency is proportional to total trade
using itValue per unit = Total value / Number of units
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Bitcoin is digitalOwnership of bitcoins is digital information
Typically used with a computer and the internet
Based on cryptography
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Bitcoin is decentralizedThere is no company “Bitcoin Ltd.”
There is no central issuer or controller
Based on a public protocol and free software
Run by a peer-to-peer network of computers
Multiple parties are each “doing their own thing”
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Bitcoin is the first!Plenty of physical currencies
Gold, silver, seashells, rocks…
Plenty of centralized digital currenciesPayPal, WebMoney, e-gold, DigiCash, LR, WoW gold, SLL,
EVE isk…
Bitcoin is the world’s first decentralized digital currency
Invented in 2008 by “Satoshi Nakamoto” (pseudonym)
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Why? No need for 3rd party Easy to send and receive money Almost no fees No single point of failure Secure Limited supply – no built-in long-term monetary and price inflation No chargebacks International Usable by weak/small countries Pseudonymous Public ledger Advanced applications
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Inflation schedule
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Bitcoin adoption (July 2013)Bitcoin “Market capitalization”: $1.2B
Users: 500,000
Bitcoin-accepting businesses: ~7000, includingWordpress, Reddit, Mega, Namecheap, OkCupidFreelancers, server hosting, software, books, clothing,
video games, electronics, groceries, car accessories, ad networks, restaurants…
Accepting donations:FSF, Wikileaks, Internet Archive, EFF, MIRI, xkcd…
Academic research: WIS, Microsoft, Cornell, ETH Zurich…30/7/2013
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Historic price chart (log scale)
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Bitcoin softwareFull software
Bitcoin-qt - http://bitcoin.org/
Lightweight clientMultibit
Hybrid web walletMy Wallet - https://blockchain.info/wallet/
Android AppBitcoinSpinner
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How to use?Install open-source client software
Software generates “addresses”, which are like bank account numbers (e.g. 1BBsbEq8Q29JpQr4jygjPof7F7uphqyUCQ)
To receive bitcoins, let the sender know your address
To send bitcoins, specify receiving address and amount, and click “send”
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How to use?
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Bitcoin in IsraelCommunity site: http://www.bitcoin.org.il/Facebook: bitcoin.il, ישראלי ביטקויןIRC: #bitcoin-il at FreenodeMeetup: http://meetup.bitcoin.org.il/Google Group - Bitcoin IsraelHebrew forum section
Bitcoin-accepting businesses: ~40 Including restaurants and other physical locations
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PredictionsExchange rate hits $300 by end of 2013
Bitcoin is mainstream by 2020Exchange rate: $10KMost people have heard about itMany shops accept it
Bitcoin is ubiquitous by 2030Exchange rate: $100KMost shops accept itCompetes with major world currencies
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Questions?
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Thank youMeni [email protected]://bitcoil.co.il1DdrvajpK221W9dTzo5cLoxMnaxu859QN6
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