Bitcoin 101 Ryan Milbourne Ryan Milb Talk Outline

Bitcoin 101 Ryan Milbourne @Ryan. Milb

Talk Outline ● Origins ● How it works ● Why it matters

Origin Satoshi Nakamoto

What is Bitcoin? ● Decentralized Consensus Mechanism ● Open source ● Ledger of all transactions

Misc Facts ● Only 21 Million ● Bitcoin mining network 8 times faster than top 500 supercomputers ● Bitcoin is Protocol

1. Private Key 2. Public Key

Private key E 9 87 3 D 79 C 6 D 8 7 D C 0 FB 6 A 57 78 63 33 89 F 4 45 32 13 30 3 D A 6 1 F 20 BD 67 FC 23 3 A A 3 32 62 Public Key 3 J 98 t 1 Wp. EZ 73 CNm. Qviecrnyi. Wrnq. Rh. WNLy

How Transactions Work

Raspberry Pi

Mining Network ● Secures the network ● Distributes new coins

Securing the Bitcoin Network

Notes on Mining: ● 1 block mined approx every 10 min ● Last bitcoin mined in 2140 ● Transaction fee ● Block Reward set at 25

Difficulty Self Adjusts every 2 weeks

Benefits of Bitcoin ● Escape Capital Controls ● Financial Freedom ● Algorithmic Regulation

For Merchants ● Lower Fees ● No Charge backs ● Less fraudulent transactions

Microtransactions ● One Satoshi 0. 00000001 ● Publishing ● Fundraising

Empower Billions ● 1 Billion with access to: o o International Markets Banking services ● More people have access to a cellphone than sanitation (U. N. Study) ● Gets around obstacles of obtaining a bank account

Disadvantages ● Volatility ● 51% attack ● Scalability ● Regulated as a commodity with capital gains

Price over the past 2 years

. . . Now on a logarithmic scale

Scalability ● Visa 2, 000 Transactions per second ● Pay Pal 40 -100 tps ● Bitcoin 7 tps

MTGOX

Keeping Mt. Gox in Perspective $8. 9 bn fine Source: Baseline Scenario State of Bitcoin Q 2 2014

Regulation ● FEC Approved ● IRS released guidelines ● SEC Approved Bitcoin backed ETF

Bit. Legal. io

Bit. Pay’s $30 m Round was the Largest Bitcoin VC Deal to Date • More than 30, 000 total merchants • As of January 2014, adding more than 1, 000 merchants to its network each week • Processing $1 m in bitcoin payments every day • Processed more than $100 m in bitcoin payments in 2013 • Most recent VC round valued Bit. Pay at $160 m State of Bitcoin Q 2 2014

Key Bitcoin Adoption Metrics Commerce Wallets Merchants ATMs Unique bitcoin addresses used per day Media Mentions in mainstream media Technology Network hash rate (billion/second) Github No. of updated repositories Investment Bitcoin market capitalization ($bn) Industry VC investment over last 12 months ($m) Number of VC-backed start-ups State of Bitcoin Q 2 2014 Jun-14 5, 327, 688 63, 000 103 136, 152 Jun-13 765, 039 N/A 41, 271 Yo. Y Δ 7 x N/A 3 x 9, 500 2, 163 4 x 111, 194, 683 12, 365 162, 269 676 685 x 18 x 8. 3 1. 0 8 x 200. 7 49 17. 1 7 12 x 7 x

Bitcoin’s Price is Now on Yahoo Finance, Google Finance and Bloomberg State of Bitcoin Q 2 2014

How to get bitcoins ● Local. Bitcoins. com ● Coinbase. com ● Exchanges ● ATMs

The Future ● Crypto 2. 0 ● Services built on top of bitcoin ● Smart Contracts ● Decentralized marketplaces

“I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government’s currency does not hold value. It’s also a good investment vehicle if you have an appetite for risk. But it won’t be a currency until volatility slows down. ” David Marcus, CEO of Paypal

Thank you For more info: www. coindesk. com Ryan. TMilbourne@gmail. com @Ryan. Milb