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Economic aspects of bitcoins
 

Economic aspects of bitcoins

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Bitcoin is a new type of money. This presentation talks about how bitcoins can possible break the fiat banking system protocol. ...

Bitcoin is a new type of money. This presentation talks about how bitcoins can possible break the fiat banking system protocol.

The first set of slides were there to depict the following story:

Think of a forest, Where a mouse, Morton, befriended an elephant called Joe. Now Morton would threaten other mice in his clan in the name of Joe and take hold of their food. Other mice were helpless because Morton was backed by a bigger animal, and had no option, but to give away their hard earned food. In the course of time, all mice befriended a bigger animal. Dave befriended Carroll the fox and Alice befriended Ethan befriended Noah the Lion and so on. Assuming all of them were collecting food, each one of them could now threaten everyone else and force others to give away their food. The food each mouse ends up with will be proportional to the strength of their big animal friend.

In 2008 came a smart mouse who knew about the happenings in the alienated human world. He was called Satoshi Nakamoto. He thought that he could take on the elephant, fox and lion with a machine gun. So he invested in them, and was able to survive in his population, among other mice with big animal friends. His threatening was way more powerful.

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    Economic aspects of bitcoins Economic aspects of bitcoins Presentation Transcript

    • Economic Aspects Of Bitcoin Shivek Khurana Cluster Innovation Centre University of Delhi
    • Give me your food !
    • Banks are bigger animals You are the mouse And mouse’s threatening is currency
    • In 2008 came a smart mouse
    • In 2008 came a smart mouse
    • In 2008 came a smart mouse
    • Bitcoin is not online money transfer backed by any state
    • Bitcoin is Distributed No big animal friend
    • Bitcoin is Distributed No big animal friend An ecosystem of miners
    • Government(s) no like Bitcoin 1. state can track issued money = earn taxes 2. seigniorage
    • Government(s) no like Bitcoin 1. state can track issued money = earn taxes 2. seigniorage 1. No track, no taxes :P 2. No printing, no seigniorage
    • The dark side 1. Promotes illegal transfer (Peer to peer transactions) 2. Controversial : backed by an algorithm
    • Transaction Bank transactions are never final
    • Transaction Bank transactions are never final Bitcoin transactions are
    • Legislative and Judiciary The justice or legislative system can take your money at any time
    • Legislative and Judiciary The justice or legislative system can take your money at any time Your bitcoins are only yours to keep
    • Limits The bank limits access to your own money
    • Limits : Lifted The bank limits access to your own money No bank, no limit
    • Macro Manipulation The legislative manipulates the value of your money
    • No Macro Manipulation The legislative manipulates the value of your money Only the community can manipulate the value
    • Restricted Geographic Mobility Difficult to move money across geographic boundaries
    • Geographic Mobility Difficult to move money across geographic boundaries Long live internet
    • Mathematically Controlled Supply Normal currencies are produced at the will of the legislative
    • Mathematically Controlled Supply Normal currencies are produced at the will of the legislative Bitcoin is controlled by an algorithm. And generated by a process called mining. There cannot be more than 21m bitcoins ever.
    • Bitcoin Today Is a mainstream currency with a total value of 8,822,045,700 USD and real atms in Canada and companies like Virgin Galantic, Shopify accepting them
    • Supply Chart
    • Is bitcoin real ? Yes. Bitcoin is real and interconvertible. Current Rate : $807 (yesterday’s price)
    • Bitcoin is open by design Nobody owns it Nobody controls it Anyone can take part in it And that’s why most government institutions/ finance dudes don’t like it
    • Bitcoin Bubble
    • $600 variation in 2 months 1. The currency is not mature 2. But bubble can be justified
    • Why Bubble ? 1. More mouses have started believing in the power of bitcoin 2. The bitcoin follows supply/ demand principle. More the demand, more is the price.
    • Bitcoin is not a bubble The value of a currency increases as the issuing authority becomes more powerful. The bitcoin issuing authority has gained sudden traction, hence the value of bitcoin has increased.
    • We are passing a milestone
    • Bitcoin Ecosystem aims to change finance as the internet changed publishing. And it is doing quite well as of now.
    • Stay Tuned protocol specification Thank you