A Bitcoin intro

@exmosis bitcoinlife.wordpress.com

Global

Usable

Open

Economically Experimental

The Exciting Stuff

What is Bitcoin?

What is Bitcoin?

Invented in 2008 by "Satoshi Nakamoto"

Bitcoin / Bitcoins / BTC

Digital Virtual Crypto currency?

Digital Virtual Crypto currency?

Internet currency

What is Bitcoin?

MATHSRULES

CODERULES

NETWORK RULES

What is Bitcoin?

Like Money

but slightly different

What is Bitcoin?

Like Pounds

but more "limited"

What is Bitcoin?

Like Paypal

but more chaotic

What is Bitcoin?

Like Second Life money

but you can buy stuff

Bitcoin MIGHT BE:

Bitcoin IS...

Bitcoin MIGHT BE:

Relatively fast (to anywhere)

(~ 10 minutes)

Bitcoin IS...

Bitcoin MIGHT BE:

Relatively free (to anywhere)

Bitcoin IS...

Bitcoin MIGHT BE:

Relatively transparent

http://www.bbc.co.uk/news/technology-19633980

Bitcoin IS...

Bitcoin MIGHT BE:

Hackable

Bitcoin IS...

Bitcoin MIGHT BE:

Your responsibility

"Bitcoin doesn't ask that users trust any institution.

Its security is based on cryptography." - Bitcoin FAQ

Bitcoin IS...

Bitcoin is NOT...

Not (totally) Instant

Bitcoin is NOT...

Not (totally) Anonymous

Bitcoin is NOT...

Not for the Faint-Hearted?

http://www.bbc.co.uk/news/technology-19486695

Bitcoin is NOT...

Not Illegal

Bitcoin is NOT...

Not necessarily easy to get

Bitcoin is NOT...

Not too stable (yet)

Bitcoin is NOT...

Source

BTC vs USD

Not great for Offline (yet?)

Bitcoin is NOT...

Not Tested For Hundreds of Years (yet)

"Bitcoin is an experimental, virtual currency that may succeed or may fail. "

- Bitcoin FAQ

Bitcoin is NOT...

Not a Pyramid Scheme

Bitcoin is NOT...

The Bitcoin Pyramid

The Bitcoin Stack

You are here?

Software

Protocol (Rules)

Payments

Economy

Community

The Bitcoin Pyramid

1. Protocol

Protocol

Who owns which numbers?Public/Private Keys are awesome

1. Protocol

Protocol

Who keeps track of it all?

1. Protocol

Protocol

Where do Bitcoins come from?

1. Protocol

Protocol 1. Protocol

Crypto Power=

Verified Ownership

Protocol 1. Protocol

Computing Power=

Verified History

1. Protocol

http://anonymity-in-bitcoin.blogspot.co.uk/

2. Software

Software

Clients

2. Software

Software

Clients

2. Software

Software

APIs, Hackabilitye.g. blockchain.info

rugatu.com satoshidice.com

2. Software

Software

Making the virtual physicalCoins

Cheques Cards

Print-your-own* Physical wallets

2. 'Software'

3. Payments

Payments 3. PaymentsHow can I get me some?

freebitcoins.appspot.comIRC

intersango.commtgox.com

For cash: localbitcoins.com(Or sell something?)

(Or beg?)

Payments 3. PaymentsHow can I get me some?

PingIt!

What can I buy?ServicesClothing

Handmade foodWatches

Tiny cannonsSoap

Tooth repairsMitt Romney's tax returns

Payments 3. Payments

HostingGames

MagazinesChocolate

Tea & CoffeeWeddings

MusicPirateboxes

Payments 3. Payments

www.blocknois.es

Payments Skip Ad

3. Payments

Wiki list of traders

Source

Payments

How do I pay?196uGPvLidBWE9M7xT8QBk6Bj8qmUxFdMf

Hmmm.

Catchy.

3. Payments

Payments

QR Codes

3. Payments

First Bitshttp://blockchain.info/address/196uGPvLidBWE9M7xT8QBk6Bj8qmUxFdMf

First Bits: 196ugp

(Only after first use though)

Payments 3. Payments

http://blockchain.info/wallet

Bitcoin in Action

Payments

Third PartiesSlowly appearing

e.g. www.bitpay.com

Effort/Value feedback...

3. Payments

4. Economy

Economy

What is "value"?

Usefulness+

Demand

4. Economy

Economy

What is "value"?

That is it.

4. Economy

What is Bitcoin's "usefulness" value?

- Ease of use?- Scarcity?- Self-fulfilling value / Speculation?- ... Other?

Economy 4. Economy

Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = Attention = Use = Value = Attention = Use = Demand = Value = Attention = Use = Demand = Value = ...

Economy 4. Economy

5. Community

Community

Is there a community?Yes and No...

Self-Interest vs Network-InterestHoarders vs SpendersScammers vs Victims

5. Community

Community

Is there a community?More responsiiblity

=

More social feedback

5. Community

Community

What happens next?* - User friendliness- More openness- Price stability?- Killer app?

*(IMHO)

5. Community

Community5. CommunityHow does Bitcoin scale?

Value is floating

Difficulty is floating

Bitcoins are declining

Interest is ... ?

Interested?Intrigued?

Indifferent?Let's talk!

bitcoinlife@exmosis.nettwitter.com/exmosisbitcoinlife.wordpress.com

14nAMRedT3b31miF3bpfMwY2VSe5tF19oD

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weusecoins.comBitcoin WikiBitcoin FAQBitcoin Businesses

Thanks.

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