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Mentor. Accelerate. InvestDeveloping tech entrepreneurs in subsaharan Africa
www.savannah.vc
Virtual Currency & Emerging Markets
@mbwana
@savannahfund
@afrikoin #Afrikoin
http:www.afrikoin.org
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• Electronic (fiat) Money: Mobile Money..
• Centralized: Airtime miles, Mobile Airtime
• Decentralized Cryptocurrencies
• Unique pieces of digital property that can be transferred. "pseudonymous"
• Gets over the double spend problem for digital money
• Created from "mining" - solving complex math problems with powerful PCs. Elaborate incentive system for rewarding miners
What are virtual currencies?
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• Wallets: unique address like email where you can store virtual currency
• Exchanges act as key cash in and cash out points similar to mobile money agents. Online and Offline ( mt.gox, bitx.co.za bter.com
• Trusted brokers. E.g. Coinbase, Kipochi, Bitpesa
• Trust and Compliance is VERY IMPORTANT. (E.g. Mt Gox losing 744,408 bitcoin worth $350M). Or bitisnstnt CEO arrested for money laundering
How do you use virtual currency?
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• Trusted brokers/fixed Exchanges: E.g. Coinbase, Kipochi, Bitpesa
• Trust and Compliance is VERY IMPORTANT. (E.g. Mt Gox losing 744,408 bitcoin worth $350M). Or Bitinstant CEO arrested for money laundering
How do you use virtual currency?
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• As a store of value (hedge against inflation, risks- Ponzi scheme)
• As a secure ledger... The value of transacting globally, disrupting banking whilst seeing every public transaction
• As a payment system (ECommerce & Micro-transactions )
• As a global decentralized currency
The 4 pillars of virtual currency
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• How does one protect wealth against risk in holding your local currency
• Many hold USD, any issues?
• Zimbabwe and South Africa capital controls
As a store of value
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• [Demo the blockchain live]
• Tracking "anonymous transactions". KYC/AML
• Helping track Govt. spending against corruption
• Disrupt banks in Africa to move away from a "banking fee" model to more needed area such as lending
As a secure Ledger
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• Ecommerce: Bitpay, paybutton
• Microtransactions: especially in financial services for the poor and donations.
• No charge back and less fraud issues dealing with plastics money
• It competed directly with mobile money and banks, cutting fees directly and more global and instant.
• Remittance or remittance driven ecommerce.
As a more effective payment system
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• Subject to taxation on gains
• As a foreign currency.
• Is it money or a commodity?
• Not permitted for merchant acceptance (illegal)
Legality of a Bitcoin
www.bitlegal.io
http://99bitcoins.com/bitcoin-worldwide-adoption-status/
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• Internet of money + Network effects. Think Skype, Facebook, Whatsapp + virtual currency
• A better way to connect and crowdfund
• The more the currency spread the more valuable it becomes
Social Network + Currency
www.thecypherfunks.com
A decentralized currency, and a decentralized band requires permission from no one. We are all "The Cypherfunks". This community requires plenty of people to contribute. Software developers, musicians, promoters, miners and fans. Anyone contribution is a great contribution.
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Dogecoin + Twitter
• A much better user experience
• Taps directly into a community