meni rosenfeld bitcoil intro.pdf · bitcoin is a currency “money can be exchanged for goods and...
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The world’s first decentralized digital currency
Meni Rosenfeld
Bitcoil
30/7/2013 Written by Meni Rosenfeld 1
Bitcoin is a currency “Money can be exchanged for goods and services”
Currency facilitates the trade of one good for another
A good currency must be: Scarce, portable, durable, fungible, divisible, current
Value = equilibrium between supply and demand Total value of a currency is proportional to total trade using it
Value per unit = Total value / Number of units
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Bitcoin is digital Ownership of bitcoins is digital information
Typically used with a computer and the internet
Based on cryptography
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Bitcoin is decentralized There is no company “Bitcoin Ltd.”
There is no central issuer or controller
Based on a public protocol and free software
Run by a peer-to-peer network of computers
Multiple parties are each “doing their own thing”
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Bitcoin is the first! Plenty of physical currencies
Gold, silver, seashells, rocks…
Plenty of centralized digital currencies PayPal, WebMoney, e-gold, DigiCash, LR, WoW gold, SLL, EVE isk…
Bitcoin is the world’s first decentralized digital currency
Invented in 2008 by “Satoshi Nakamoto” (pseudonym)
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Why? No need for 3rd party
Easy to send and receive money
Almost no fees
No single point of failure
Secure
Limited supply – no built-in long-term monetary and price inflation
No chargebacks
International
Usable by weak/small countries
Pseudonymous
Public ledger
Advanced applications
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Inflation schedule
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Bitcoin adoption (July 2013) Bitcoin “Market capitalization”: $1.2B
Users: 500,000
Bitcoin-accepting businesses: ~7000, including Wordpress, Reddit, Mega, Namecheap, OkCupid
Freelancers, server hosting, software, books, clothing, video games, electronics, groceries, car accessories, ad networks, restaurants…
Accepting donations: FSF, Wikileaks, Internet Archive, EFF, MIRI, xkcd…
Academic research: WIS, Microsoft, Cornell, ETH Zurich…
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Historic price chart (log scale)
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Bitcoin software Full software
Bitcoin-qt - http://bitcoin.org/
Lightweight client Multibit
Hybrid web wallet My Wallet - https://blockchain.info/wallet/
Android App BitcoinSpinner
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How to use? Install open-source client software
Software generates “addresses”, which are like bank account numbers (e.g. 1BBsbEq8Q29JpQr4jygjPof7F7uphqyUCQ)
To receive bitcoins, let the sender know your address
To send bitcoins, specify receiving address and amount, and click “send”
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How to use?
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Bitcoin in Israel Community site: http://www.bitcoin.org.il/
Facebook: bitcoin.il, ביטקוין ישראלי
IRC: #bitcoin-il at Freenode
Meetup: http://meetup.bitcoin.org.il/
Google Group - Bitcoin Israel
Hebrew forum section
Bitcoin-accepting businesses: ~40 Including restaurants and other physical locations
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Predictions Exchange rate hits $300 by end of 2013
Bitcoin is mainstream by 2020 Exchange rate: $10K
Most people have heard about it
Many shops accept it
Bitcoin is ubiquitous by 2030 Exchange rate: $100K
Most shops accept it
Competes with major world currencies
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Questions?
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Thank you Meni Rosenfeld
https://bitcoil.co.il
1DdrvajpK221W9dTzo5cLoxMnaxu859QN6
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