Jon Matonis
Executive Director
Bitcoin 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?
 Global financial surveillance
 Using money for identity tracking
 Traceability ...
Paper Cash And Bitcoin Are
Similar
 User-defined privacy (anonymity)
 Untraceable (unlinked from source)
 Irrevocable (...
Precursors To Bitcoin
 Hashcash (1997)

Adam Back

 B-money (1998)

Wei Dai

 Proof-of-work system to limit email spam
...
Bitcoin Is A Reaction To...
 Dominant legacy infrastructure
 Centralised monetary authority
 Diminishing financial priv...
Bitcoin Merchant
Benefits

 Extend acceptance to countries not reached







by Visa, MasterCard, and PayPal (60+)...
Bitcoin Is A Safe Alternative

11
Summary Of Bitcoin Key Features










First mover network advantage
Independent unit of value with fixed supp...
De-Central Banks And Their
Impact

13
Impact On Monetary
Policy
 Fractional reserve banking becomes nearly

impossible without the emergence of money
substitut...
Impact On Fiscal Policy
 Governments gradually shift from taxing

income to taxing consumption
 Registration of exchange...
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
“I think [bitcoin] is a technical tour
de force.” -Bill Gates

“I think the fact that within the bitcoi...
My Quote

“Bitcoin is to legal tender
as BitTorrents are to copyrights”

23
Thank You

Twitter:
Email:

jonmatonis
jon@bitcoinfoundation.org

24
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The appeal of a nonpolitical monetary unit

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Presentation by Jon Matonis at SSE, 25 October 2013

Published in: Economy & Finance, Business
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  • The beautiful economy of Slideshare distills bitcoin to its beautiful economy; in our attempts to better articulate the fundamentally-irresistable qualities of this new system of value, doing so succinctly and effectively has been our most challenging task.

    Well done, JM
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The appeal of a nonpolitical monetary unit

  1. 1. Jon Matonis Executive Director Bitcoin Foundation
  2. 2. Giant Stones Of Yap 2
  3. 3. Search For Extraterrestrial Intelligence (SETI) 3
  4. 4. Bitcoin Network Computational Power 4
  5. 5. The War On Cash – What’s It All About? 5
  6. 6. The War On Cash – What’s It All About?  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 6
  7. 7. Paper Cash And Bitcoin Are Similar  User-defined privacy (anonymity)  Untraceable (unlinked from source)  Irrevocable (bearer nature) 7
  8. 8. Precursors To Bitcoin  Hashcash (1997) Adam Back  B-money (1998) Wei Dai  Proof-of-work system to limit email spam  SHA-1 hash of the header     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
  9. 9. Bitcoin Is A Reaction To...  Dominant legacy infrastructure  Centralised monetary authority  Diminishing financial privacy 9
  10. 10. Bitcoin Merchant Benefits  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 10
  11. 11. Bitcoin Is A Safe Alternative 11
  12. 12. Summary Of Bitcoin Key Features          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? 12
  13. 13. De-Central Banks And Their Impact 13
  14. 14. Impact On Monetary Policy  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 14
  15. 15. Impact On Fiscal Policy  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 15
  16. 16. Transform Global Transfer Networks 16
  17. 17. Transform Global Transfer Networks 17
  18. 18. Transform Asset Management Industry 18
  19. 19. Transform Retail Payments 19
  20. 20. Transform Retail Payments 20
  21. 21. Bitcoin Market Capitalization 21
  22. 22. Quotes From Others “I think [bitcoin] is a technical tour de force.” -Bill Gates “I think the fact that within the bitcoin universe an algorithm replaces the functions of [the government]… is actually pretty cool.” -Al Gore “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.” -Nassim Taleb 22
  23. 23. My Quote “Bitcoin is to legal tender as BitTorrents are to copyrights” 23
  24. 24. Thank You Twitter: Email: jonmatonis jon@bitcoinfoundation.org 24

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