bitcoin festival of media rome
TRANSCRIPT
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 Is Decentralized?
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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
Bitcoin Benefits for Consumers
Analog Equivalent Rights Paper Cash to Electronic Cash
Anonymity Privacy Untraceability Personal Irreversibility Finality
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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
No disallowed merchant categories codes (MCCs)
Not subject to payments embargo Eliminate chargeback and fraud risk Processing fees approaching zero Near immediacy of settlement
De-Central Banking is the Future
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Bitcoin Active Nodes Worldwide
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We Don’t Need Kings To Coin Our
Money
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The Post-Legal Tender Era
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Absence of financial intermediary transforms current industries
Retail payments go mobile Interbank transfers go point-to-
point Asset management becomes
personal
The Post-Legal Tender Era
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The power of decentralization alters political institutions
Monetary policy impact Fiscal policy impact
Monetary Policy in Post-Legal Tender Era
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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 in Post-Legal Tender Era
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De-emphasize Income Tax - governments gradually shift from taxing income to taxing consumption
Endpoint Regulation - registration of exchanges and merchants facilitate higher consumption taxes
Check on Spending - government spending becomes constrained by actual revenue raised, which means that unpopular expenditures will be difficult to fund
More Likely To Be Spent Than Hoarded
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Bitcoin’s Cultural Impact on Media
Crowdfunding Charitable causes Microtransactions In-app purchases and gaming Branding advantage Free publicity
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Bitcoin Transaction Network Ranking
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ISO Proposal for Bitcoin as XBT
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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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