Slides from a talk I gave about Bitcoin, its history, and what are some of its important characteristics that make it valuable.

1. Information contained herein is for informational purposes only and should not be considered investment advice or a recommendation to purchase or otherwise
trade an investment. All purchase and sale of securities, bitcoin, etc. are the sole discretion of the reader. Articles and links are provided for informational purposes
only and believed to be reliable; however, in no way shall their presentation here be construed as a guarantee of their accuracy by the author. If you detect any
omissions, misstatements or errors, please contact me immediately. Information is at a period in time and subject to change.
Don’t trust. Verify.*
* Blockstream Inc., https://store.blockstream.com/product/dont-trust-verify-tshirt/

2. Let’s go back to
2007/2008...

3. From 2004 through 2007, $1.4 trillion worth of CDOs were issued [1].
[1] Morgenson, Gretchen; Joshua Rosner (2011). Reckless Endangerment : How Outsized ambition, Greed and Corruption Led to Economic Armageddon. New York: Times Books, Henry Holt
and Company. p. 283.
$1.4 trillion.
From 2001 to 2007, overall mortgage debt in the US increased from $5.3
trillion to $10.5 trillion [2].
$10.5 trillion.
[2] United States. (2010). The financial crisis inquiry report: Final report of the National Commission on the Causes of the Financial and Economic Crisis in the United States. Washington,
DC: Financial Crisis Inquiry Commission.

4. 2007CDOs
Synthetic CDOs
MORTGAGES
BANKS

5. *Anna Katherine Barnett-Hart The Story of the CDO Market Meltdown: An Empirical Analysis-March 2009-Cited by Michael Lewis in The Big Short
Financial institutions
suffered nearly one
trillion dollars in losses
from 2007 to early
2009*.

6. Bitcoin whitepaper released
October 31, 2008
Satoshi Nakamoto, 2008 31 October, Bitcoin: A Peer-to-Peer
Electronic Cash System, https://bitcoin.org/bitcoin.pdf

7. The Times 03/Jan/2009
Chancellor on brink of second
bailout for banks
000000000019d6689c085ae1658
31e934ff763ae46a2a6c172b3f1
b60a8ce26f

8. Properties of bitcoin

9. Peer-to-peer
No third-party involved
Node A Node B
Node C

10. 1 hour* vs 24 hours
*10-min avg confirmation time * 6 blocks (to be considered secure)
2,400% faster!

11. Decentralized
No single point of failure and
control

12. Fungible
1 bitcoin is 1 bitcoin is 1 bitcoin

13. Scarce
21 million bitcoin cap
Brainless Tales, Bitcoin Rollercoaster Guy,
http://www.brainlesstales.com/bitcoin-roller-coaster

14. 2018, May 10, Google, Inc.,

15. Censorship Resistant
Unlike PayPal, credit cards, wire
transfers, etc.

16. Easy to transport
Unlike gold

17. Immutable
Code is law
Deval Kulshrestha, Lady Justice, 12 May 2015, This file is licensed under the Creative Commons
Attribution-Share Alike 4.0 International license

18. Secure
Protection from fraud and theft
McGeddon, 14 May 2016, This file is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.

19. HODL*
*2013, December 18, GameKyuubi, I AM HODLING,
https://bitcointalk.org/index.php?topic=375643.0

20. Appendix

21. Lower rated (“mezzanine”) tranches of
subprime-mortgages bought from mortgage
bonds and then bundled together and sold to
investors as a new security.
What’s a CDO?
Caveat:
This is what CDOs were for the most part from 2004-2007. A CDO can consist of any type of security; it is not strictly
limited to the mortgage-backed security (MBS).

22. 2017 budget request for US military
https://en.wikipedia.org/wiki/File:2017_Request_Budget_Breakdo
wn_Fig_1.jpg
$582.7 billion.
“The Congress shall have power * * * ; To declare War... but
no Appropriation of Money to that Use shall be for a longer
Term than two Years.” -Article I, Section 8, Clauses 11-14 of
US Constitution.

23. What if there was a ‘money of the internet’*?
*2014, January 27, Akin Fernandez a.k.a. Beautyon_, Bitcoin is not money. If you seek “compliance” you are asking for trouble.,
https://hackernoon.com/bitcoin-is-not-money-if-you-seek-compliance-you-are-asking-for-trouble-cbe9107e5298

24. “First you get the money,
then you get the power.”
Scarface, 1983

25. Potential beneficiaries

26. Around 1.7 billion people
throughout the world
remained unbanked in 2017*.
*The Global Findex Database 2017: https://globalfindex.worldbank.org/
1,700,000,000.
“One billion financially excluded adults
already own a mobile phone and about 480
million have internet access.” -The 2017
Global Findex Database Overview Report
An MTN-operated "mobile phone booth" (Uganda 2009)

27. FUD: fear, uncertainty, doubt

28. “Can’t it be used to fund
terrorism?”
“It’s too expensive to buy a
cup of coffee.”
“The government can
just shut it
down/regulate it.”
“It’s a Ponzi scheme.”