BITCOIN:
MONEY WITHOUT GOVERNMENT
Jon Matonis
Executive Director
Bitcoin Foundation
Giant Stone Money of Yap
2
Search for Extraterrestrial Intelligence (SETI)
3
Bitcoin Network Computational Power
4
What Happens When
Trust Is
Decentralized?
5
Bitcoin is Disruption Within Disruption
6
 Supreme disruption in payments occurs when
a new monetary unit is introduced
...
Bitcoin Benefits for Consumers
 Analog Equivalent Rights
 Paper Cash to Electronic Cash
 Anonymity Privacy
 Untraceabi...
Bitcoin Benefits for Merchants
8
 Extend acceptance to countries not reached
byVisa, MasterCard, and PayPal (60+)
 Provi...
De-Central Banking is the Future
9
Bitcoin Active Nodes Worldwide
10
We Don’t Need
Kings To Coin
Our Money
11
The Post-Legal Tender Era
12
 Absence of financial intermediary transforms
current industries
 Retail payments go mobile...
The Post-Legal Tender Era
13
 The power of decentralization alters political
institutions
 Monetary policy impact
 Fisc...
Monetary Policy in Post-Legal Tender Era
14
 No Fractional Issuance - fractional reserve
banking becomes nearly impossibl...
Fiscal Policy in Post-Legal Tender Era
15
 De-emphasize IncomeTax - governments
gradually shift from taxing income to tax...
More Likely To Be Spent Than Hoarded
16
Bitcoin’s Cultural Impact on Media
 Crowdfunding
 Charitable causes
 Microtransactions
 In-app purchases and gaming
 ...
Bitcoin Transaction Network Ranking
18
ISO Proposal for Bitcoin as XBT
19
Quotes From Establishment
20
“Bitcoin is the beginning of
something great: a currency without a
government, something nece...
Quote from Me
“Bitcoin is to legal tender
as BitTorrents are to copyrights.”
- Jon Matonis
21
Thank You
Twitter: jonmatonis
Email: jon@bitcoinfoundation.org
22
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Bitcoin festival of media rome

  1. 1. BITCOIN: MONEY WITHOUT GOVERNMENT 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 Is Decentralized? 5
  6. 6. Bitcoin is Disruption Within Disruption 6  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
  7. 7. Bitcoin Benefits for Consumers  Analog Equivalent Rights  Paper Cash to Electronic Cash  Anonymity Privacy  Untraceability Personal  Irreversibility Finality 7
  8. 8. Bitcoin Benefits for Merchants 8  Extend acceptance to countries not reached byVisa, 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
  9. 9. De-Central Banking is the Future 9
  10. 10. Bitcoin Active Nodes Worldwide 10
  11. 11. We Don’t Need Kings To Coin Our Money 11
  12. 12. The Post-Legal Tender Era 12  Absence of financial intermediary transforms current industries  Retail payments go mobile  Interbank transfers go point-to-point  Asset management becomes personal
  13. 13. The Post-Legal Tender Era 13  The power of decentralization alters political institutions  Monetary policy impact  Fiscal policy impact
  14. 14. Monetary Policy in Post-Legal Tender Era 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 in Post-Legal Tender Era 15  De-emphasize IncomeTax - governments gradually shift from taxing income to taxing consumption  Endpoint Regulation - registration of exchanges and merchants facilitate higher consumption taxes  Check on Spending - government spending becomes constrained by actual revenue raised, which means that unpopular expenditures will be difficult to fund
  16. 16. More Likely To Be Spent Than Hoarded 16
  17. 17. Bitcoin’s Cultural Impact on Media  Crowdfunding  Charitable causes  Microtransactions  In-app purchases and gaming  Branding advantage  Free publicity 17
  18. 18. Bitcoin Transaction Network Ranking 18
  19. 19. ISO Proposal for Bitcoin as XBT 19
  20. 20. Quotes From Establishment 20 “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
  21. 21. Quote from Me “Bitcoin is to legal tender as BitTorrents are to copyrights.” - Jon Matonis 21
  22. 22. Thank You Twitter: jonmatonis Email: jon@bitcoinfoundation.org 22

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