bitcoin 2015 - nick sullivan changetip
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Bitcoin -‐ 2015 and Beyond Nick Sullivan, CEO/Founder of ChangeCoin
www.changeCp.com
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Technology Revolu.on“Eventually mainstream products, companies and industries emerge to commercialize it; its effects become profound; and later, many people wonder why its powerful promise wasn’t more obvious from the start.
What technology am I talking about? Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014.”
-‐-‐ Marc Andreessen, creator of Netscape, founder at Andreessen Horowitz, in his ar8cle on Why Bitcoin Ma=ers.
“Bitcoin is a remarkable cryptographic achievement.”
-‐-‐ Eric Schmidt, CEO of Google !
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Old Money -‐ Fric.on
Fees • ACH (typically $0.25 -‐ $0.45, up to $10 for same-‐day) • Credit Card (1 -‐ 3%, plus flat fee) • Domes.c Wire Transfer ($15 -‐ $35) • Interna.onal Wire Transfer ($25 -‐ $75)
User Experience • Enter payment informa.on • On another site, breaking flow
Time • Mul.ple hours/days, only on “banking” days
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Global Currency
Anonymity Low Transac6on Fees
)?
• Neutralizes currency across borders
• Common store of value
• No need for personal informa.on to send payment
• Protects privacy
• Send across the globe in minutes for less than a penny
Why Bitcoin?
SmallTransac6ons
• Amounts as small as 1 satoshi (1/100 millionth of a bitcoin) can be sent (currently ~$0.0001)
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Reduce Fric.on
Exis.ng transac.ons become easier. Example -‐ Cross-‐border remiKances • Coins.ph in Philippines
• Best “last mile” Bitcoin infrastructure in the world • 0.5 -‐ 2% instead of 9% for Western Union • Less than 1 day, 365 days a year
• Pademobile, similar, for Mexico • 37coins -‐ Bitcoin over SMS • BitPesa -‐ Bitcoin payments to mobile phones in Kenya
• 3% instead of 14 -‐ 24% for Western Union
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Leapfrog to Bitcoin!
• 5.5 billion people worldwide are unbanked or underbanked • Philippines
• 20% have a bank account • 5% have a credit card
• La.n America • 32% have a bank account • 16% have a credit card
!
An opportunity exists for these emerging markets to leapfrog over costly banks and credit cards and go straight to digital currencies for electronic payments, commerce, and money transfer.
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Make payments easier
Money flows more freely around the globe
New human behaviors, vehicles, and markets are created
Micropayment Infrastructure for the Web
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Send Money Over Social Media
Men.on @change.p and an amount
We respond with a link to collect
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Where else?
Currently Supported Upcoming
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5,000
10,000
15,000
20,000
25,000
30,000
35,000
Mar Apr May Jun Jul Aug Sep
Social Accounts Connected Tips Users
Viral Growth -‐ 30+% MoM
Bitcoin + Social Media = Mass consumer adop.on
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Other Uses of Micropayments
• Disrupt the online adver.sing ecosystem • Are ads are the right way to mone.ze content? • Real value chain is the producer/consumer • Lacking micro payment infrastructure
!• Mesh networks -‐ everyone is an ISP, by the minute !• Chari.es/causes, fundraising, crowd funding
• #icebucketchallenge could raise money over Twioer • Micro crowd fund projects
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Micropayments, con.nued
• Micro Labor -‐ new view on outsourcing • Next step of Odesk, Fiver, Mechanical Turk • Reviews • Social Sharing
!• Direct paid user acquisi.on
• Instead of paying up to $50 to Facebook or Google for the user to click, pay the user directly to try your product
!
!
!
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Other Disrup.ons
P2PPayments
Fundraising Chari.es/Causes
RemioanceGiring
Disrupt
PayPal GirsGir CardsCash Girs
Disrupt
ContentMone.za.onMicro-‐Loans
Disrupt
NGO Funds Dispersal Crowd-‐Funding
Dona.ons
Disrupt
Wire TransfersACH
Money Transfer
Social Purchase
Pay directly over
InstagramTwioer
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Bitcoin -‐ 2015 and Beyond Nick Sullivan, CEO/Founder of ChangeCoin
www.changeCp.com Currently Fundraising
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Appendix
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Government-‐backed currency?
Crazy bet: Within 10 years, a government will announce that they are using a digital currency as their primary currency. !
Pros: • Traceability/accountability • Criminal ac.vity discouraged • More taxes (less underground economy) Cons: • Loss of control !
Ecuador and Bolivia already have plans
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References/Links
• hops://www.change.p.com/ • hop://datatopics.worldbank.org/g20fidata/ • hop://business.inquirer.net/54393/most-‐filipinos-‐have-‐no-‐bank-‐accounts%E2%80%94bsp-‐survey
• hop://www.cgap.org/countries/la.n-‐america-‐and-‐caribbean • hop://www.capgemini.com/resource-‐file-‐access/resource/pdf/wpr_2013.pdf
• hop://www.coindesk.com/bitcoin-‐venture-‐capital/ • hops://coins.ph/ • hops://www.37coins.com/ • hops://www.pademobile.com/en/us/
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P2P Payment Networks -‐ Revenue
2013
Reven
ue
In Billions
$1,400 $2,800 $4,200 $5,600 $7,000
Square MoneyGram Western Union PayPal
P2P Payments by Spend
2013
Es.mates
in Billions
$100,000 $200,000 $300,000 $400,000 $500,000
Cash Girs Gir Cards (verified) Dona.on Remioance (verified)
Payments Market
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Bitcoin Investmentin
Milli
ons
0
7.5
15
22.5
30
Chain.com Circle BitPay Xapo Vaurum Korbit Vogogo
$279.83M in investment to date*
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EcosystemePaymentsMoney Transfer
Crypto-‐CurrenciesRe-‐loadable pre-‐paid Cards
ACH Wire EDI Paymode-‐X Syncada Sungard
Visa MasterCard
American Express NetSpend Payoneer
Walmart MoneyCard !!!
PayPal MoneyBookers Western Union
MoneyGram Remit2India
Xoom Travelex Walmart
ChangeCoin Circle BitPay Xapo Blockstream Coinbase Stripe BitCredits