Bitcoin History of Money Barter Goods BECOME Money

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History of Money

Barter

Goods *BECOME* Money • • • Acceptable Durable Portable Scarce Divisible Recognizable

Gold Storage -> Paper Receipts • Safety for travelers • Charles I’s Royal Mint loan (1640) • Goldsmiths • Fungibility • Lending England, 17 th Century

Bank of England Gold Receipts

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

Bank Runs

Government Takes Over Banking

1: 1 -> 1: 2 -> 1: 10 1694 – Bank of England Monopoly 1913 – US Federal Reserve Monopoly

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 27 AD – Augustus – Denarius 95% Silver 45 coins / pound Gold 117 AD – Trajan – Denarius 85% Silver 180 AD – Marcus Aurelius – Danarius 75% Silver 200 AD – Septimius – Denarius 60% Silver 210 AD – Caracalla – Denarius 50% Silver 50 coins / pound Gold 230 AD – 72 coins / pound Gold 268 AD – Denarius 0. 5% Silver 300 AD – Diocletian – Argenteus Silver Coin 60 coins / pound Gold 330 AD – Constantine – 72 coins / pound Gold Same idea, different technology.

Ancient China - 7 th Century (Tang Dynasty). Merchant receipts of deposit during. - 13 th Century (Yuan Dynasty). Marco Polo: "How the Great Kaan Causeth the Bark of Trees, Made into Something Like Paper, to Pass for Money All Over his Country. "

Enforcing Government Money

Money Wasn’t Always Government Issued

Multiple Currencies – No Problem

Electronic Money • EGold -- 1996 to 2009 $2 billion transactions / year (2008) • Liberty Reserve -- 2006 to 2013 “Liberty Dollars” “Liberty Euros” ~ $0. 9 billion transactions /year • Also, Goldmoney. com, e-Bullion. com, Crowne. Gold. com, Pecunix. com, INTgold. com.

Peer to Peer

Decentralization & the Distributed Consensus Problem

2008 – Satoshi’s Paper

History & $ Price of 1 Bitcoin Oct 2008: Satoshi Paper Jan 2009: First wallets begin working Oct 2009: $1 = 1, 309. 03 BTC May 2010: Pizza sells for 10, 000 Btc July 2010: Mt. Gox Established July-Nov 2011: $32 -> $2 March 2013: Cyprus Crisis. $40 -> $260 -> $90 -> $120 May 2013: Forbes “Living On Bitcoin For A Week“ May 2013: First major VC investment in Bitcoin companies July 2013: Bitcoin Fund Oct 2013: Silk Road Shutdown Oct-Nov 2013: Chinese Demand. $120 -> $1200 -> $800 Dec 2013: China restricts banks from using Bitcoin Jan 2014: Bit. Instant CEO arrested Feb 2014: Apple Bans Bitcoin Apps Jun 2014: Apple allows Bitcoin Apps June 2014: Mt Gox Bankruptcy Sept 2014: Overstock. com accepts Btc

Market Capitalization Euro (M 2): Dollar (M 2): $16 Trillion $14 Trillion Ukraine (M 2): $95 Billon Mongolia (M 2): Georgia (M 2): $5. 1 Billion $4. 8 Billion Bitcoin: $4. 5 Billion Moldova (M 2): Armenia (M 2): $3. 9 Billion $3. 3 Billion Litecoin: $125 Million Sao Tome & Principe: $100 Million

Bitcoins in the World

Bitcoin Bars

Kreuzberg, Berlin http: //bitcoinsinberlin. com

New York Open Air Bitcoin Exchange

A taxi in Kenya

Bctip. org

Bitcoin ATM in Kyiv

Where to get Bitcoins

Bitcoin Technology

• • Send Money Anywhere For FREE Instantly Anonymously*

Post Office vs. Email

Public Transactions aren’t actually encoded, in fact, they’re public.

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

Bitcoin Mining

Bitcoin Mining Hash Rate

Mining Pools

51% Attack?

Alt-Coins

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

? ? ? vs. Bitcoin Disruptive technology

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

Other Uses of Decentralized Consensus Technology

Types of Bitcoin Businesses - Normal Businesses Adopting New Payment Systems - Merchant Services (Bit. Pay) - Exchanges (Coinbase, Bit. Stamp, Kuna) - Wallet Companies - Consultants - Smart Contract / Digital Property Innovators (Master Coin vs Ethereum) - Miners - Mining equipment manufacturing / sales

End. Did you like this lecture? Bitcoin me: 1 Hi 3 ZLNib 1 Nte 2 JX 7 dd 3 v. YAf. Jq. ULZLgj. Kr http: //Roman. Skaskiw. com/