Transcript Intro to Bitcoin & A Brief History of Money

฿
Bitcoin
Bitcoin Wallet
Bitcoin Wallet - receive
Advertising for Bitcoins 
Bitcoin Wallet - send
History of Money
Barter
Goods *BECOME* Money
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•
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Acceptable
Durable
Portable
Scarce
Divisible
Recognizable
Peacefully and voluntarily, markets
choose money.
Gold Storage -> Paper Receipts
England, 17th Century
1:1 -> 1:2 -> 1:10
1:1 -> 1:2 -> 1:9
1:1 -> 1:2 -> 1:10
1694 – The Bank of England
Fraud Limited by Bank Runs
This was a *good* thing. Bad banks failed. Responsible banks increased their
market share. Nevertheless, the government decided to “protect” us . . . .
Government Takes over Banking to
“Protect” Citizens
1:1 -> 1:2 -> 1:10
1913 – US Federal Reserve
1:1 -> 1:2 -> 1:10
1:1 -> 1:2 -> 1:10
1971 – Executive Order 11615
Who Will be the Aristocrats?
Producers vs Central Bank Cronies
Bad Money -> Bad Culture
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
210AD – Caracalla –
Denarius 50% Silver
50 coins / pound Gold
230AD –
72 coins / pound Gold
268 AD –
Denarius 0.5% Silver
300AD – Diocletian –
Argenteus Silver Coin
60 coins / pound Gold
330AD – Constantine –
72 coins / pound Gold
Same idea, different technology.
Enforcing Government Money
Enforcing Government Money
Enforcing Government Money
Enforcing Government Money
Money Wasn’t Always
Government Issued
Multiple Currencies – No Problem
Peer to Peer
Peer to Peer
Each wallet keeps a record of ALL Bitcoin transactions. Yes, all of them.
Peer to Peer
Why is that important?
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Send Money Anywhere
For FREE
Instantly
Anonymously*
Goods Money
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Acceptable
Durable
Portable
Scarce
Divisible
Recognizable
Bitcoins in the
World
Bitcoin Bars
Kreuzberg, Berlin
http://bitcoinsinberlin.com
New York Open Air Bitcoin Exchange
Bctip.org
Bitcoin Store
From Feb 27, 2013
(uses BITPAY)
History of Bitcoin
• October 2008 – Bitcoin design paper – Satoshi Nakamoto
• January 2009 – Bitcoin v0.1 announced
• May 2010 – Pizza purchased for 10,000 BTC
• July 2010 – MtGox established
History of Bitcoin - ฿/$
History of Bitcoin - ฿/$
History of Bitcoin – Market Cap. ($)
History of Bitcoin – Client Downloads
as of 13/05
History of Bitcoin – Client Downloads
07/05 to 13/05
Where to get Bitcoins
(Or just get paid in Bitcoins)
Btc-e.com
Crypto Currency
What does
this mean?
Public Transaction
Transactions aren’t actually encoded, in
fact, they’re public.
Public Transaction
Bitcoin Mining
Crypto is used to Authenticate transaction – prevent
double spending, false ownership.
Bitcoin Mining
Bitcoin Mining
Bitcoin Mining
Bitcoin Mining
51% Attack?
“More powerful than the tread of
mighty armies is an idea whose time
has come.” ~ Victor Hugo
Alternative Coins
MAJOR:
The idea is out.
Even if a fatal flaw
is found and
exploited in
MINOR:
Bitcoin, a better
-TRC Terracoin based on BTC, fast difficulty adjustment, initialy flaved but corrected
version will
-DVC Devcoin merged mined with BTC, 90% of generation goes to foundation, 10% to miners
-IXC IxCoin merged mined with BTC, premined 580k coins but still alive
emerge within 24
-NVC NovaCoin - scrypt hashing[like LTC] , proof of stake [like PPC] , controversial start
-FRC Freicoin - back alive. 4.89% anual demurrage. for the first 3 years 80% block subsidy goes to foundation,hours
20% to miners
....
-FTC FeatherCoin- LTC clone with 4x more coins.
probably within 1
CANDIDATES:
hour.
-BTC Bitcoin - first, strongest, most accepted, most mined, high volume market, a true currency
-LTC Litecoin - second only to BTC , faster than BTC, Smaller efficiency gap between GPUs and CPUs , ASIC-hostile
-NMC Namecoin merged mined with BTC, used for alternative p2p domain system
-PPC PPcoin Proof Of Stake [very innovative, low energy ] , compatibile with BTC miners
-BTE Bytecoin- the 1:1 bitcoin copy, nothing changed. extremally high starting hype/hashrate.
-BQC BBQCoin- forgotten after 51% attack on launch, now revived and active. super fast version of LTC.
-MNC Mincoin- similar to BBQ, but very bad launch [no binaries + 25000% superblocks] giving 10% of all coins to insiders.
-CNC CHNCoin- similar to BBQ, announced on chinese forum first, very big hashrate.
-BTB BitBar- scarce version of NovaCoin. low starting diff like FTC and CNC, but quick adjustment.
-JKC Junkcoin- started as a joke, but now working ok. low starting diff and slow retarget like BTE, FTC, MNC, CNC
-YAC YACoin- Yet Another altCoin. NovaCoin fork, with modified hashing - for now CPU-ONLY
-RYC Royalcoin- Another LTC clone, starting with low diff and superblocks like MNC ...
-FRK Franko- Another faster LTC, again 0.00... starting diff. scarce.
DEAD / DYING :
-FTC Gamecoin- yes, FTC. clone so bad it was 51%'ed the first day.
-LQC Liquidcoin made to be very fast at constant difficulty, dead [pool closed, exchange closed]
-SC Solidcoin - dying (10-20% fee), designed to improove IxCoin, hard to be neutral on this one, 1.0 was a premine scam, 2.0 says BTC is
pyramid scheme.
Post Office vs. Email
??? vs. Bitcoin
Disruptive technology
Technology Adoption Trend
Technology Adoption Trend
Satoshi’s Motivation?
Headline embedded in genesis block:
"Chancellor
on brink of second bailout for
banks"
January 3, 2009, Times of London.
End.
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