Intro to Bitcoin & A Brief History of Money

Bitcoin Wallet
Bitcoin Wallet - receive
Advertising for Bitcoins 
Bitcoin Wallet - send
History of Money
Goods *BECOME* Money
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?
Send Money Anywhere
Goods Money
Bitcoins in the
Bitcoin Bars
Kreuzberg, Berlin
New York Open Air Bitcoin Exchange
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)
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
The idea is out.
Even if a fatal flaw
is found and
exploited in
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
-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.
-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:
on brink of second bailout for
January 3, 2009, Times of London.
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