CubeIT Bitcoin lecture

THE FUTURE OF MONEY
@Mr_M_Russell #TheCubeIT #Bitcoin

Today
What is Bitcoin & Cryptocurrency?
How do you keep it & spend it?
Where does it come from?
How can you use it in Sarnia/Lambton?
What does the future hold?

What is Bitcoin?
Bitcoin is money.
What’s money?
A store of value
A means of exchange
A unit of account

What is Bitcoin?
How Google describes bitcoin
Bitcoin is an innovative payment network and a new kind
of money.
Bitcoin uses peer-to-peer technology to operate with no
central authority or banks; managing transactions and the
issuing of bitcoins is carried out collectively by the
network.

What is Bitcoin?
Cryptocurrency
Holder has ownership
No records are kept as to identity
Easy to keep anonymous
Impossible to recover if lost or stolen

What is Bitcoin?
Invented by Satoshi Nakamoto
Released as open-source in 2009
Public, distributed ledger called the
Blockchain
A decentralised, peer-to-peer network
Bitcoins are created as rewards for payment
processing work on the network
Spending Bitcoins is similar to sending email

1st Purchase
2010
Bitcoin had no value, had never been used for purchase
Florida programmer convinced someone to buy him
pizza in exchange for 10,000 Bitcoins
He bought 2
As of yesterday 1 bitcoin was worth $243 US
$4.8 million pizza order

Controversy
Silk Road
Drugs
Weapons
Craigslist
Prostitutes
MT.GOX

How do you keep it, and spend it?
Bitcoin wallets
Bitcoin-Qt
Online wallets
Mobile wallets
Cold wallets

Bitcoin Wallets
Has an address for receiving –
public key
1DdbN4KGniYMmxNfuesobSRPaF5xjGjuDP
Can also be shown as a QR code
Can hold any amount of bitcoin
Private key & password to send

Bitcoin-Qt
Runs on your
computer
Has full copy of
blockchain

Online Wallets
Wallets
Exchanges
ChangeTip
#btctip

Mobile Wallets
On your smartphone
No blockchain to
download
Lose your phone, lose
your money

Cold Wallets
Paper wallet
Verso Card
Trezor

Where do Bitcoins come from?
When a block is solved on the blockchain
Started at 50
Halves ~every 4 years
12.5 in 2016
21,000,000 max
Block solved every 10 mins
Also includes any optional transaction fees

Solved?
A new block has info
that chains it to
previous block
Cryptographic hash
of the previous block
SHA-256

Mining
CPU
GPU
Asic
Farms
Pools

How can you use it in Sarnia/Lambton?
Person to person
transactions
LocalBitcoins.com
PayPal / Square
Online Shopping
Send money “back
home”

Online Shopping
Clearly Canadian
Dish Network
Microsoft
Expedia, Time Magazine
NewEgg, TigerDirect, Dell

Globally, immigrants send $500
billion “back home” each year
20% of Canadians are
immigrants
33% of people in Lambton
County are 2nd generation
Canadians or newer

Sending Money
Wire Transfer - $30
Send Bitcoin - $0.003
Transaction is 250 bytes
If you can tweet or text you can
receive money

What does the future hold?
There are 193 currencies in
the world
Can it be more stable than 30?
It probably is today
50? Within a few years
Escrow solution will help it
grow

What does the future hold?
Tom Goodwin, Sr. Vice President of
strategy and innovation at Havas Media
Uber, the world’s largest taxi company,
owns no vehicles. Facebook, the world’s
most popular media owner, creates no
content. Alibaba, the most valuable
retailer, has no inventory. And Airbnb,
the world’s largest accommodation
provider, owns no real estate. Something
interesting is happening.

What does
the future
hold?

Questions?

Links
Wikipedia entry http://en.wikipedia.org/wiki/Bitcoin
Andreas Anatopoulos - Bitcoin evangelist https://twitter.com/aantonop
Winklevoss price index https://winkdex.com/
Mycelium mobile wallet https://mycelium.com/
Local Bitcoins https://localbitcoins.com/
Github repo https://github.com/bitcoin/bitcoin
r/bitcoin http://www.reddit.com/r/Bitcoin
r/bitcoinmining http://www.reddit.com/r/Bitcoinmining
Slush's mining pool https://mining.bitcoin.cz/
Bitmain mining hardware https://www.bitmaintech.com/product.htm

CubeIT Bitcoin lecture

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