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The Appeal of a Nonpolitical Currency
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The Appeal of a Nonpolitical Currency

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Transcript

  • 1. Jon Matonis Bitcoin Foundation
  • 2. Giant Stones Of Yap 2
  • 3. Search For Extraterrestrial Intelligence (SETI) 3
  • 4. Bitcoin Network Computational Power 4
  • 5. The War On Cash – What’s It All About? 5
  • 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. Paper Cash And Bitcoin Are Similar 7  User-defined privacy (anonymity)  Untraceable (unlinked from source)  Irrevocable (bearer nature)
  • 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. Bitcoin Is A Reaction To...  Dominant legacy infrastructure  Centralised monetary authority  Diminishing financial privacy 9
  • 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. Bitcoin Is A Safe Alternative 11
  • 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. De-Central Banks And Their Impact 13
  • 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. 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. Transform Global Transfer Networks 16
  • 17. Transform Global Transfer Networks 17
  • 18. Transform Asset Management Industry 18
  • 19. Transform Retail Payments 19
  • 20. Transform Retail Payments 20
  • 21. Bitcoin Market Capitalization 21
  • 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. My Quote “Bitcoin is to legal tender as BitTorrents are to copyrights” 23
  • 24. Thank You Twitter: jonmatonis Email: jon@bitcoinfoundation.org 24