This talk covers the history of money: how commodity money evolved naturally from barter economies, how paper receipts replaced gold, how fiat money replaced paper receipts, and finally, how bitcoin threatens to replace fiat money.

1. Bitcoin
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2. History of Money

3. Barter

4. Goods *BECOME* Money
• Acceptable
• Durable
• Portable
• Scarce
• Divisible
• Recognizable

5. Gold Storage -> Paper Receipts
England, 17th Century
• Safety for
travelers
• Charles I’s Royal
Mint loan (1640)
• Goldsmiths
• Fungibility
• Lending

6. Bank of England Gold Receipts

7. 1:1 -> 1:2 -> 1:10

8. 1:1 -> 1:2 -> 1:10

9. 1:1 -> 1:2 -> 1:10

10. Bank Runs

11. Government Takes Over Banking

12. 1:1 -> 1:2 -> 1:10
1694 – Bank of England Monopoly
1913 – US Federal Reserve Monopoly

13. 1:1 -> 1:2 -> 1:10

14. 1:1 -> 1:2 -> 1:10
1971 – Executive Order 11615

16. Who Will be the Aristocrats?
Producers vs Central Bank Cronies
Bad Money -> Bad Culture

17. Ancient Rome
27AD – Augustus –
Denarius 95% Silver
45 coins / pound Gold
117AD – Trajan –
Denarius 85% Silver
180AD – Marcus Aurelius –
Danarius 75% Silver
200AD – Septimius –
Denarius 60% Silver
230AD –
72 coins / pound Gold
268 AD –
Denarius 0.5% Silver
300AD – Diocletian –
Argenteus Silver Coin
60 coins / pound Gold
210AD – Caracalla –
Denarius 50% Silver
50 coins / pound Gold
330AD – Constantine –
72 coins / pound Gold
Same idea, different technology.

18. Ancient China
- 7th Century (Tang Dynasty). Merchant receipts of deposit
during.
- 13th Century (Yuan Dynasty). Marco Polo:
"How the Great Kaan Causeth the Bark of Trees, Made into
Something Like Paper, to Pass for Money All Over his
Country."

19. Enforcing Government Money

20. Enforcing Government Money

21. Enforcing Government Money

22. Enforcing Government Money

23. Enforcing Government Money

24. Money Wasn’t Always
Government Issued

25. Multiple Currencies – No Problem

26. Electronic Money
• EGold -- 1996 to 2009
$2 billion transactions / year (2008)
• Liberty Reserve -- 2006 to 2013
“Liberty Dollars” “Liberty Euros”
~ $0.9 billion transactions /year
• Also, Goldmoney.com, e-Bullion.com,
CrowneGold.com, Pecunix.com,
INTgold.com.

27. Peer to Peer

28. Peer to Peer

29. Decentralization & the Distributed
Consensus Problem

30. 2008 – Satoshi’s Paper

31. History & $ Price of 1 Bitcoin
Oct 2008: Satoshi Paper
Jan 2009: First wallets begin working
Oct 2009: $1 = 1,309.03 BTC
May 2010: Pizza sells for 10,000 Btc
July 2010: MtGox Established
July-Nov 2011: $32 -> $2
March 2013: Cyprus Crisis. $40 -> $260 -> $90 -> $120
May 2013: Forbes “Living On Bitcoin For A Week“
May 2013: First major VC investment in Bitcoin companies
July 2013: Bitcoin Fund
Oct 2013: Silk Road Shutdown
Oct-Nov 2013: Chinese Demand. $120 -> $1200 -> $800
Dec 2013: China restricts banks from using Bitcoin
Jan 2014: BitInstant CEO arrested
Feb 2014: Apple Bans Bitcoin Apps
Jun 2014: Apple allows Bitcoin Apps
June 2014: Mt Gox Bankruptcy
Sept 2014: Overstock.com accepts Btc

32. Market Capitalization
Euro (M2): $16 Trillion
Dollar (M2): $14 Trillion
Ukraine (M2): $95 Billon
Mongolia (M2): $5.1 Billion
Georgia (M2): $4.8 Billion
Bitcoin: $4.5 Billion
Moldova (M2): $3.9 Billion
Armenia (M2): $3.3 Billion
Litecoin: $125 Million
Sao Tome & Principe: $100Million

33. Bitcoins in the
World

34. Bitcoin Bars

35. Kreuzberg, Berlin
http://bitcoinsinberlin.com

36. New York Open Air Bitcoin Exchange

39. A taxi in Kenya

43. Bctip.org

44. Bitcoin ATM in Kyiv

47. Where to get Bitcoins

48. Bitcoin Technology

49. • Send Money Anywhere
• For FREE
• Instantly
• Anonymously*

50. Post Office vs. Email

51. Public Transaction
Transactions aren’t actually encoded, in
fact, they’re public.

52. Bitcoin Mining
Crypto is used to Authenticate transaction – prevent
double spending, false ownership.

53. Bitcoin Mining

54. Bitcoin Mining

55. Bitcoin Mining

56. Bitcoin Mining

57. Bitcoin Mining Hash Rate

58. Mining Pools

59. 51% Attack?

60. Alt-Coins

61. “More powerful than the tread of
mighty armies is an idea whose time
has come.” ~ Victor Hugo

62. ??? vs. Bitcoin
Disruptive technology

63. Satoshi’s Motivation?
Headline embedded in genesis block:
"Chancellor on brink of second bailout for
banks"
January 3, 2009, Times of London.

64. Other Uses of Decentralized
Consensus Technology

65. Types of Bitcoin Businesses
- Normal Businesses Adopting New Payment Systems
- Merchant Services (BitPay)
- Exchanges (Coinbase, BitStamp, Kuna)
- Wallet Companies
- Consultants
- Smart Contract / Digital Property Innovators
(Master Coin vs Ethereum)
- Miners
- Mining equipment manufacturing / sales

66. End.
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