Jon Matonis
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?
6
 Global financial surveillance
 Using money for identity tracking
 Traceabilit...
Paper Cash And Bitcoin Are
Similar
7
 User-defined privacy (anonymity)
 Untraceable (unlinked from source)
 Irrevocable...
Precursors To Bitcoin
 Hashcash (1997) Adam Back
 Proof-of-work system to limit email spam
 SHA-1 hash of the header
 ...
Bitcoin Is A Reaction To...
 Dominant legacy infrastructure
 Centralised monetary authority
 Diminishing financial priv...
Bitcoin Merchant
Benefits
10
 Extend acceptance to countries not reached
by Visa, MasterCard, and PayPal (60+)
 Provide ...
Bitcoin Is A Safe Alternative
11
Summary Of Bitcoin Key Features
12
 First mover network advantage
 Independent unit of value with fixed supply
 Decentr...
De-Central Banks And Their
Impact
13
Impact On Monetary
Policy
14
 Fractional reserve banking becomes nearly
impossible without the emergence of money
substit...
Impact On Fiscal Policy
15
 Governments gradually shift from taxing
income to taxing consumption
 Registration of exchan...
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 a...
My Quote
“Bitcoin is to legal tender
as BitTorrents are to copyrights”
23
Thank You
Twitter: jonmatonis
Email: jon@bitcoinfoundation.org
24
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The Appeal of a Nonpolitical Currency

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The Appeal of a Nonpolitical Currency

  1. 1. Jon Matonis 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? 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
  7. 7. Paper Cash And Bitcoin Are Similar 7  User-defined privacy (anonymity)  Untraceable (unlinked from source)  Irrevocable (bearer nature)
  8. 8. 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
  9. 9. Bitcoin Is A Reaction To...  Dominant legacy infrastructure  Centralised monetary authority  Diminishing financial privacy 9
  10. 10. 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
  11. 11. Bitcoin Is A Safe Alternative 11
  12. 12. 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?
  13. 13. De-Central Banks And Their Impact 13
  14. 14. 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
  15. 15. 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
  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 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
  23. 23. My Quote “Bitcoin is to legal tender as BitTorrents are to copyrights” 23
  24. 24. Thank You Twitter: jonmatonis Email: jon@bitcoinfoundation.org 24
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