BITCOIN: What it is, Why it’s important and How it

won’t save usFrank Flores

Rio Grande Valley Zeitgeist MovementZ-Day 2014

BITCOIN: What it is

Decentralized

No single point of failure or control

Digital

Not a physical object - ephemeral

Peer to Peer

All nodes are equal, anti-fragile

Cryptocurrency

Security and integrity rely on mathematics

Open source software

BITCOIN: How it works

Gossip

Everyone shares their signed messages

ECDSA 256 / SHA-256 / RIPEMD-160

Verification

Do the messages make sense?

Merkle Tree / Algorithmic Control

Securing and Issuance

Add messages to ledger and reward miners

SHA-256 Hashing / Defined and Limited

Growth Rate of Bitcoin Network Hashing Power2009-Present

BITCOIN: Why it’s important

Obviates Governmental Authority

No one person or entity regulates currency

Not subject to searches, seizures, freezing

More Efficient, Cheaper Than Banks / CC’s

A virtuous circle that rewards contributors

Volunteers operate the infrastructure, vote

The Ephemeralization of Money/Finance

Economic opportunity for under/unbanked

Basis for new technologies/paradigms

BITCOIN: How it won’t save us...

Continues to Promote Money System of Value

Does not promote sustainability

Thrives on market inefficiencies

Maintains and Increases Inequality

Must have access to significant technology

Must invest more wealth to earn more wealth

Cartel and Monopoly/Oligarchy or Factions

Market pressures still exist

Bitcoin network can become fractured

...but here’s why it helps us!

Encourages An Honest Discussion About Money

Many news outlets asking “What is money?”

Much more discussion of fiat, Fed polices

Proves a useful technology and paradigm

Given agreeable software, we’ll contribute!

No one in charge, everyone votes!

Alternative currencies enable significant change!

SolarCoin, PrimeCoin, NameCoin

Change encourages more change!

QUESTIONSAND

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