Login 2014 Vilnius

Jon MatonisExecutive DirectorBitcoin Foundation

Giant Stone Money Of Yap

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Search For Extraterrestrial Intelligence (SETI)

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Bitcoin Network Computational Power

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What Happens When Trust Becomes

Decentralized?

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What Is Bitcoin?

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Bitcoin Is Disruption Within Disruption

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Supreme disruption in payments occurs when a new monetary unit is introduced

Capital “B” Bitcoin is a distributed network without the need for a third party

Small “b” bitcoin is a new monetary unit of account on this network

Bitcoin sparks currency competition with national issuers

De-Central Banking Is The Future

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Bitcoin Active Nodes Worldwide

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Bitcoin Benefits For Consumers

Currency of youth (18-27 years old) Truly global and banks not required Not centrally controlled by

governments Protection from financial surveillance Analog equivalent rights (cash-like) Paper Cash to Digital Cash

Anonymous Private

Untraceable Personal

Irreversible Final

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Bitcoin Benefits For Merchants

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Extend acceptance to countries not reached by Visa, MasterCard, and PayPal (60+)

Provide payment method for the unbanked Not subject to payments embargo No disallowed merchant categories codes

(MCCs) Eliminate chargeback and fraud risk Processing fees approaching zero Near immediacy of settlement Obtain free publicity

We Don’t Need Kings To Coin Our

Money

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The Post-Legal Tender Era

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The power of decentralization alters and outlives traditional political institutions

Monetary policy impact Fiscal policy impact

Monetary Policy Impact

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No Fractional Issuance - fractional reserve banking becomes nearly impossible without the emergence of money substitutes

Healthy Deflation - opportunistic and unrestrained inflation gives way to natural deflation

Reduction in detrimental business cycles - interest rates respond more to the risk of the lending activity rather than central bank open market operations

Fiscal Policy Impact

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De-emphasize Income Tax - governments gradually shift from taxing income to taxing consumption

Check on Spending - government spending becomes constrained by actual revenue raised, which means that unpopular expenditures will be difficult to fund

Early Use Cases For Bitcoin

Argentina Cyprus Kenya

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The Post-Legal Tender Era

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Absence of a financial intermediary radically transforms current industries

Retail payments go mobile Interbank transfers go point-to-

point Asset management becomes

personal

Bitcoin Mobile Is Here Today

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Bitcoin Is Being Spent More Than Ever

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Bitcoin Advancing On Other Networks

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XBT Is Proposed ISO Currency Code

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Quotes From Establishment

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“Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.” -Nassim Taleb

“I think the fact that within the bitcoin universe an algorithm replaces the functions of [the government]… is actually pretty cool.” -Al Gore

“I think [bitcoin] is a technical tour de force.” -Bill Gates

Quote From Me

“Bitcoin is to legal tender

as BitTorrents are to copyrights.”

- Jon Matonis

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Thank You

Twitter: jonmatonis

Email: jon@bitcoinfoundation.org

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