Bitcoin

Bitcoin Wallet

Bitcoin Wallet - receive

Advertising for Bitcoins

Bitcoin Wallet - send

History of Money

Barter

Goods *BECOME* Money Acceptable Durable Portable Scarce Divisible Recognizable Peacefully and voluntarily, markets choose money.

Gold Storage -> Paper Receipts England, 17 th Century

1:1 -> 1:2 -> 1:10

1:1 -> 1:2 -> 1:9

1:1 -> 1:2 -> 1: – 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: – US Federal Reserve

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 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 300AD – Diocletian – Argenteus Silver Coin 60 coins / pound Gold 330AD – Constantine – 72 coins / pound Gold 210AD – Caracalla – Denarius 50% Silver 50 coins / pound Gold 268 AD – Denarius 0.5% Silver 268 AD – Denarius 0.5% Silver Same idea, different technology.

Enforcing Government Money

Money Wasnt Always Government Issued

Multiple Currencies – No Problem

Peer to Peer

Each wallet keeps a record of ALL Bitcoin transactions. Yes, all of them.

Peer to Peer Why is that important?

Send Money Anywhere For FREE Instantly Anonymously*

Goods Money Acceptable Durable Portable Scarce Divisible Recognizable

Bitcoins in the World

Bitcoin Bars

Kreuzberg, Berlin

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 – 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 arent actually encoded, in fact, theyre public.

Public Transaction

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

Bitcoin Mining

51% Attack?

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

Alternative Coins MAJOR: -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 MINOR: -TRC Terracoin based on BTC, fast difficulty adjustment, initialy flaved but corrected -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 -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, 20% to miners -FTC FeatherCoin- LTC clone with 4x more coins. CANDIDATES: -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 % 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 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. The idea is out. Even if a fatal flaw is found and exploited in Bitcoin, a better version will emerge within 24 hours.... probably within 1 hour.

Post Office vs.

??? vs. Bitcoin Disruptive technology

Technology Adoption Trend

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

End. Did you like this lecture? Bitcoin me: 1Hi3ZLNib1Nte2JX7dd3vYAfJqULZLgjKr