Money. Currency. Bitcoin. - Nicolas Courtoisnicolascourtois.com/bitcoin/Money Currency Bitcoin...

Money. Currency. Bitcoin.

Nadav Rosenberg

nadav.rosenberg@gmail.com

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The passion for Money

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- What is Money?

- What is Currency?

Agenda

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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The story of the Rai stones at Yap

Yap Island in Micronesia Currency at Yap

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Money is a social concept enabling

transfer of purchasing power

- Social

Money is a concept

- Social

- Concept

- Purchasing power

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Money = Purchasing Power

- Time is ‘Purchasing Power’

Literally, Money means Purchasing Power

- ‘Purchasing Power’ never sleeps

- ‘Purchasing Power’ can’t buy love

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- Unit of account

- Medium of exchange

- “Store of value”

The “features” of Money

- “Store of value”

- Accounting system

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Language is a social concept enabling

transfer of messages(Money is to Commerce what Language is to Communication)

As a concept Money is similar to Language

- Transfer of knowledge

- Mass communication

- Large scale cooperation

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- What is Money?

- What is Currency?

Agenda

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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Currency is a set of symbols that

represents purchasing power

Currency is a Tool

- Stones

- Gold Pieces

- Dollars

- Bitcoins

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Currencies

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Currency doesn’t have to be…

▪Of intrinsic value

▪Backed by a government

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▪Accepted by everyone

▪Accepted as tax

▪A legal tender

Currency has to be…

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▪A set of symbols

Language is a set of symbols that

represents things, actions, and

attributes

Currency is similar to Language

attributes

- English

- Japanese

- C++

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Examples of Currencies and Languages

Currency Examples

Commodity▪ Salt

▪ Shells

▪ Gold

▪ Dollar

Payment

▪ Raw Material

▪ Coins

▪ Coins

Language Examples

Human▪ English

▪ Japanese

▪ French

▪ C++

Delivery

▪ Verbal

▪ Written

▪ Signs

▪ Cards

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Fiat (Gov.)▪ Dollar

▪ Yen

▪ Pounds

Crypto▪ Bitcoin

▪ Litecoin

▪ Coins

▪ Notes

▪ Digital

▪ Digital

Computer▪ C++

▪ Java

▪ Python

▪ Cards

▪ Digital

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5 requirements for a perfect Currency

Requirement

Limited ▪ Final number of symbols

Fungible▪ Symbols are interchangeable. A=B, B=A.

So that…

▪ No one can steal your relative purchasing power

▪ You can trade with anyone, anytime

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Durable

Divisible

Transferable

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▪ Symbols can be easily transferred

▪ Symbols are easily divisible to smaller parts

▪ Symbols can survive time and weather

▪ It can represent also small things

▪ You can save your purchasing power or pass it on

▪ It’s practical to use

- What is Money?

- What is Currency?

Agenda

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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Bitcoin is both a protocol and a

currency

Bitcoin is two things

currency

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Protocol

Think Internet. Network. Infrastructure. Technology.

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Currency.

Think email. (but also other applications)

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Bitcoin uses a Public Ledger

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- What is Money?

- What is Currency?

Agenda

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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Receiving Currency

20 Gold Coins 20 Digital £ 20 BTC

$

Us

er

Us

er

Us

er

Us

er

Us

er

20 Rai

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Abstract symbol in

limited supply

3rd Party is making

sure that you have

it and that the one

gave it to you

doesn’t have it

anymore

Physical symbol in

limited supply

Clear to you that

you have it and

that the one gave it

to you doesn’t

have it anymore

Abstract symbol in

limited supply

Everyone knows that

you have it and that

the one gave it to you

doesn’t have it

anymore

Physical symbol in

limited supply

Not very clear who

owns it.

Comparing Currencies

Limited

Fungible

Gold BitcoinDollarRai Stones

Good

Bad

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Durable

Divisible

Transferable

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The Bitcoin Economy

Commerce:

- Micro transactions

- Banking

- Shift of Risks

- Lower Transaction

Costs

Cross Border:

- Remittances

- SMEs

- Decentralised

corporations

- P2P lending

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Political:

- Small Governments

- Efficiency

- Creative Destruction

- Balanced Global Economy

Deflation:

- Saving

- Positive ROI

- Durable goods

Progress

Progress is driven by entrepreneurs and

the human spirit, not by currency supply!

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nadav.rosenberg@gmail.com

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