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Login 2014 Vilnius


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Bitcoin is Money Without Government

Published in: Economy & Finance, Business
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Login 2014 Vilnius

  1. 1. Jon Matonis Executive Director Bitcoin Foundation
  2. 2. Giant Stone Money Of Yap 2
  3. 3. Search For Extraterrestrial Intelligence (SETI) 3
  4. 4. Bitcoin Network Computational Power 4
  5. 5. What Happens When Trust Becomes Decentralized? 5
  6. 6. What Is Bitcoin? 6
  7. 7. Bitcoin Is Disruption Within Disruption 7  Supreme disruption in payments occurs when a new monetary unit is introduced  Capital “B” Bitcoin is a distributed network without the need for a third party  Small “b” bitcoin is a new monetary unit of account on this network  Bitcoin sparks currency competition with national issuers
  8. 8. De-Central Banking Is The Future 8
  9. 9. Bitcoin Active Nodes Worldwide 9
  10. 10. Bitcoin Benefits For Consumers  Currency of youth (18-27 years old)  Truly global and banks not required  Not centrally controlled by governments  Protection from financial surveillance  Analog equivalent rights (cash-like)  Paper Cash to Digital Cash Anonymous Private Untraceable Personal Irreversible Final 10
  11. 11. Bitcoin Benefits For Merchants 11  Extend acceptance to countries not reached by Visa, MasterCard, and PayPal (60+)  Provide payment method for the unbanked  Not subject to payments embargo  No disallowed merchant categories codes (MCCs)  Eliminate chargeback and fraud risk  Processing fees approaching zero  Near immediacy of settlement  Obtain free publicity
  12. 12. We Don’t Need Kings To Coin Our Money 12
  13. 13. The Post-Legal Tender Era 13  The power of decentralization alters and outlives traditional political institutions  Monetary policy impact  Fiscal policy impact
  14. 14. Monetary Policy Impact 14  No Fractional Issuance - fractional reserve banking becomes nearly impossible without the emergence of money substitutes  Healthy Deflation - opportunistic and unrestrained inflation gives way to natural deflation  Reduction in detrimental business cycles - interest rates respond more to the risk of the lending activity rather than central bank open market operations
  15. 15. Fiscal Policy Impact 15  De-emphasize Income Tax - governments gradually shift from taxing income to taxing consumption  Check on Spending - government spending becomes constrained by actual revenue raised, which means that unpopular expenditures will be difficult to fund
  16. 16. Early Use Cases For Bitcoin  Argentina  Cyprus  Kenya 16
  17. 17. The Post-Legal Tender Era 17  Absence of a financial intermediary radically transforms current industries  Retail payments go mobile  Interbank transfers go point-to-point  Asset management becomes personal
  18. 18. Bitcoin Mobile Is Here Today 18
  19. 19. Bitcoin Is Being Spent More Than Ever 19
  20. 20. Bitcoin Advancing On Other Networks 20
  21. 21. XBT Is Proposed ISO Currency Code 21
  22. 22. Quotes From Establishment 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. Quote From Me “Bitcoin is to legal tender as BitTorrents are to copyrights.” - Jon Matonis 23
  24. 24. Thank You Twitter: jonmatonis Email: 24