14. Bernanke: Let there be
money
Treasury Bonds
USD
1
2
+1,000,000 T-Bills
- 1,000,000 USD
Lend
3
+1,000,000 USD
+1,000,000
USD
15. Sad story of Zimbabwe
• First Dollar: ZWD (1980)
1.47 USD: 1 ZWD
…….
• Third Dollar
1 ZWR = 10 billion ZWN
• Fourth dollar: We’re really screwed!
A 100-trillion-dollar bill, it turns out, is
worth about $5.
17. Satoshi: Let there be coins
Transaction 1
Transaction 1
Transaction N
25 reward
Block 100
Transaction 1
Transaction 1
Transaction N
Block 101
25 reward
+25 Bitcoins!
+25 Bitcoins!
Max 21,000,000
…
Bitcoin Miner/Processor
Bitcoin Miner/Processor
18. Recap
- Money = debt
- Dollar is a product (produced
by government)
- Cryptocurrency is Dollar 2.0:
Solving for Principal-Agent risk
Bitcoin / Cryptocurrency
Predefined supply
algorithm
Vote by money
Central Bank
- Create money
- Set interest rate & reserve
requirement
- NO opt-out
VS
22. How can cryptocurrency help?
❖ 5th protocol: Value exchange layer (e.g. Uber)
❖ Decentralized financial innovations - e.g. pool insurance
❖ MaidSafe: Decentralizing Internet
24. - Thomas Hobbes <Social Contract>
“… that a man be willing, when others are
so too, … , to lay down this right to all
things; and be contented with so much
liberty against other men as he would
allow other men against himself.”Constitution
Laws
Sovereign
Corp
Business Contracts
Non-profit LLP
25. Cryptocurrency enabling new org
structure
❖ Why: Principal-Agent-Customer
❖ Distributed software foundations
❖ Charity / Investment Vehicle
❖ Autonomous public service
❖ Crowd Jury
27. PayPal for Bitcoin: Coinbase
❖ One of the most popular wallet/ exchange
❖ Serving 31,000+ merchants
❖ $30m+ funding form A16Z, Union square, YCombinator, etc.
❖ Daily volume $20m +++
31. Most exciting crypto startup ever
❖ Traditional: Angel - VC - IPO
❖ Koinify: IPO on Day 1
❖ Coin Products:
❖ Game, Apps
❖ Financial assets
❖ Celebrity / Personal Coins
32. What’s Success for Koinify
❖ US Annual Tax income: $3.3 trillion
❖ Crowdfund HyperLoop - $7 billion
❖ Government projects modularized - medical research,
space projects, even university
33. Life: powered by blockchain
Birth StartupFinance for College IPO WillLawsuit
Powered by Blockchain
Bye
34. Recap – 3 layers of innovation
Money as a service: Bitcoin & Altcoins
Permission-less innovation
Social contracts: Ethereum
35. –Steve Jobs
“Life can be much broader once you discover
…Everything around you that you call life was
made up by people that were no smarter than you
and you can change it, …”
36. Quiz / Open discussion
❖ Most exciting crypto use case for you
❖ Implications for a world with abundant currencies
38. Thought Experiment 2
If X never invented, given X and Y, would Y be a no brainer?
Appendix: Evaluating Disruptive
Technology
Often disguised as cheaper but inferior, or better but too expensive
Thought Experiment 1
Assuming 100% adoption,, would it be a better world?
Thought Experiment 3: What if it becomes 100x cheaper, AND 100x faster?
40. Appendix: Further Resources
❖ Bitcoin-Dev Mailing List
❖ JayWSalon BitCoin SIG
❖ Sillicon Valley Bitcoin Meetup : Every Tue @ Plug n Play
❖ Stanford Bitcoin Meetup (Palo Alto)
❖ Ethereum Meetup
❖ SV Counterparty Meetup (In progress)
Editor's Notes
How I get into bitcoin
Most fundamental innovation since Internet
“Internet thinking paradigm” – changes of power structure, leveling playfield
The moral hazard of a dictator or irresponsible central government flooding the money
US
Bitcoin encourage us to rethink the old paradigms
Financial world is especially highly regulated and considered sacred
Decentralization also help us enforcement the freedom of innovation