Introduction to Virtual Currencies and Emerging Markets

1. Mentor. Accelerate. Invest
Developing tech entrepreneurs in subsaharan Africa
www.savannah.vc
Virtual Currency & Emerging
Markets
@mbwana
@savannahfund
@afrikoin #Afrikoin
http:www.afrikoin.org

2. What are virtual currencies?
• Electronic (fiat) Money: Mobile Money..
• Centralized: Airtime miles, Mobile Airtime
• Decentralized Cryptocurrencies
• Unique pieces of digital property that can be transferred.
"pseudonymous"
• Gets over the double spend problem for digital money
• Created from "mining" - solving complex math problems with
powerful PCs. Elaborate incentive system for rewarding miners

3. How do you use virtual currency?
• Wallets: unique address like email
where you can store virtual currency
• Exchanges act as key cash in and
cash out points similar to mobile
money agents. Online and Offline
( mt.gox, bitx.co.za bter.com
• Trusted brokers. E.g. Coinbase,
Kipochi, Bitpesa
• Trust and Compliance is VERY
IMPORTANT. (E.g. Mt Gox losing
744,408 bitcoin worth $350M). Or
bitisnstnt CEO arrested for money
laundering

5. How do you use virtual currency?
• Trusted brokers/fixed Exchanges:
E.g. Coinbase, Kipochi, Bitpesa
• Trust and Compliance is VERY
IMPORTANT. (E.g. Mt Gox losing
744,408 bitcoin worth $350M). Or
Bitinstant CEO arrested for money
laundering

6. The 4 pillars of virtual currency
• As a store of value (hedge
against inflation, risks- Ponzi
scheme)
• As a secure ledger... The
value of transacting globally,
disrupting banking whilst
seeing every public
transaction
• As a payment system
(ECommerce & Microtransactions )
• As a global decentralized
currency

7. As a store of value
• How does one protect
wealth against risk in
holding your local
currency
• Many hold USD, any
issues?
• Zimbabwe and South
Africa capital controls

8. As a secure Ledger
• [Demo the blockchain live]
• Tracking "anonymous transactions". KYC/AML
• Helping track Govt. spending against corruption
• Disrupt banks in Africa to move away from a "banking
fee" model to more needed area such as lending

9. As a more effective payment
system
• Ecommerce: Bitpay, paybutton
• Microtransactions: especially in financial services for the poor and
donations.
• No charge back and less fraud issues dealing with plastics money
• It competed directly with mobile money and banks, cutting fees
directly and more global and instant.
• Remittance or remittance driven ecommerce.

11. Legality of a Bitcoin
• Subject to taxation on gains
• As a foreign currency.
• Is it money or a
commodity?
• Not permitted for merchant
acceptance (illegal)
www.bitlegal.io
http://99bitcoins.com/bitcoin-worldwide-adoption-status/

12. Social Network + Currency
• Internet of money + Network
effects. Think Skype, Facebook,
Whatsapp + virtual currency
• A better way to connect and
crowdfund
• The more the currency spread the
more valuable it becomes
A decentralized currency, and a decentralized band requires
permission from no one. We are all "The Cypherfunks". This
community requires plenty of people to contribute. Software
developers, musicians, promoters, miners and fans. Anyone
contribution is a great contribution.
www.thecypherfunks.com

13. Dogecoin + Twitter
• A much better user
experience
• Taps directly into a
community