Post on 21-Oct-2014
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Jon MatonisExecutive DirectorBitcoin Foundation
Giant Stone Money Of Yap
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Search For Extraterrestrial Intelligence (SETI)
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Bitcoin Network Computational Power
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What Happens When Trust Becomes
Decentralized?
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What Is Bitcoin?
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Bitcoin Is Disruption Within Disruption
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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
De-Central Banking Is The Future
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Bitcoin Active Nodes Worldwide
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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
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Bitcoin Benefits For Merchants
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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
We Don’t Need Kings To Coin Our
Money
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The Post-Legal Tender Era
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The power of decentralization alters and outlives traditional political institutions
Monetary policy impact Fiscal policy impact
Monetary Policy Impact
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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
Fiscal Policy Impact
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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
Early Use Cases For Bitcoin
Argentina Cyprus Kenya
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The Post-Legal Tender Era
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Absence of a financial intermediary radically transforms current industries
Retail payments go mobile Interbank transfers go point-to-
point Asset management becomes
personal
Bitcoin Mobile Is Here Today
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Bitcoin Is Being Spent More Than Ever
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Bitcoin Advancing On Other Networks
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XBT Is Proposed ISO Currency Code
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Quotes From Establishment
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“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
Quote From Me
“Bitcoin is to legal tender
as BitTorrents are to copyrights.”
- Jon Matonis
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Thank You
Twitter: jonmatonis
Email: jon@bitcoinfoundation.org
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