An Introduction to Bitcoin. Its usage and Future

Today we are going to discuss all about Bitcoin. what is Bitcoin it's Future and more.

Let's start with some questions.

Have you used a digital currency like bitcoin at least once?

Do you own bitcoin at this moment, or any other cryptocurrency?

Now Bitcoin and the Digital currency revolution has started…

It is actually very difficult to explain. For a moment, forget everything you think, you know about Bitcoin. Forget everything you have heard about blockchains. Let's start from basics.

When I heard about Bitcoin for the first time, My reaction was exactly the same as the reaction of everybody else who heard about Bitcoin the first time,

Again a few months later, I heard about Bitcoin. This time, I read the whitepaper which launched this system.

I keep finding new layers of depth to understand this. The reason, it is so fascinating? It isn't what it appears to be at first glance.

Bitcoin isn't just money. The blockchain is not a system of currency. It is not a company, it is not a product it is not a service that you sign up for. It is not just a currency. Currency is the first application.
It is a platform of trust. It is the concept of decentralization applied to the human communication of value.
What is money? As INQ told us, it is an illusion. It is imaginary. The reason we don't grasp, that is because money is so deeply embedded in our civilization. Money is one of the oldest technologies that humanity has. It precedes writing.

How do we know that?

The very first you might even consider that money had an oral tradition until it needed to invent a written tradition, and so a system of writing was created for it.

In the history of money that spans tens of thousands of years, there have been may be five major changes.
  • From pure barter exchange to the first abstraction of value,
  • Shells, feathers, beads, nuts, stones, and precious metals.
  • Then paper money, and plastic money, and
  • Now Network Money.
Bitcoin introduces a platform on which you can run currency as an application. A network without any central points of control. A system that is decentralized like the internet itself.
It is not money for the internet but the internet of money. And what is money?
  • Money is a language, a linguistic abstraction, that we use to communicate value to each other.
  • Money simply allows us to express value which may have economic consequences but it also has other consequences.
  • We use money to express and create social bonds, relationships, associations, and organisations.
Bitcoin is the first system of money that is not controlled by any SINGLE entity that is completely decentralized.
It introduces the very same effects that the internet brought to communication.

If money is speech, if money is a language and you disconnect it from all other media to make it pure speech, pure content, an internet content type, a protocol designation money over IP(Internet Protocol).

It completely separates it from all previous concepts of nations, sovereign issuers institutions that control.

We transition from institution-based money to a Network-based Money.

Of course, everyone will welcome this with open arms... Not a chance.

What do you think people said the first time someone was presented with a gold depository certificate instead of a gold coin?

They said: "Hah, that's not money! Go away."

What do you think happened in 1950 when someone showed up at a motel presented their diners, club membership card, and said, "I'll pay with this piece of paper."

"That's not money. Go away!"

Now we are on the verge of a new transformation of money for creating the first completely global, borderless decentralized and open form of money.

Money where you can build applications because it is programmable.

You don't need to ask for anyone's permission to launch an application any more than you need to ask for permission to launch an application on the internet.

The only requirement to have a successful application on the 'internet of money' is two interested participants.

That is your minimum market segment and you have an application. A million applications will flourish. When you push innovation to the edges of the network,

when you remove the requirement for permission, what happens?

An exponential explosion of innovation in applications that could not be built on the old systems of money because those systems required permission, required a significantly large market segment, required adoption by many in order to be available at all.

Now, none of those requirements exist.

Anyone in the world can download an application or use even a feature phone with text messaging and immediately acquire the same powers that institutions of banking have today.

When I say anyone, that is only scratching the surface. Not only does Bitcoin's currency not recognize borders, it also does not recognize people. It doesn't matter if you are a person, a refrigerator, or a self-driving car.

Throughout the history of money, ownership of currency required personhood either as an individual... or an association of individuals in a corporation.

Bitcoin can be owned by machines, by software agents. Machines can pay each other and that is not just about economic activity.
  • It is the basis for a market-based security system.
  • It is the basis for creating bonds of authentication between devices.
  • It is the basis for new applications that have never been done before.
Bitcoin and Blockchain technology unifies the various systems of money.

Today we have systems of money for small payments and systems of money for large payments.

We have systems of money for payments between individuals, payments between companies and for payments between governments.

Does that remind you of something? That is how communication used to be before the internet.

We had systems of communication for pictures, systems of communication for letters for short distances and long distances.

The internet came and unified all of those.

'The Internet of Money' creates a single network which can do a micro-transaction to a giga-transaction... in terms of the amount of Bitcoin, in seconds.

Anywhere in the world for any participant without permission but if you just look at the application of money, you are missing the point.

You can take the language, the building blocks of this platform, and use it to construct other languages that communicate value: tokens, reward points and brand loyalty coins.

Today, there are over a thousand digital currencies using the design pattern, the recipe of Bitcoin. Most of them are junk some of them are not.

Over the next decade, we will see tens of thousands and then hundreds of thousands of coins.

Some will have economic use; some will simply be expressions of loyalty and affiliation.

They may represent items in the physical world such as the title for a house or the key for a car that can be transferred from one owner to another. Five seconds later that new owner can step into the car and drive away because the car can validate the standard of ownership…

We cannot yet imagine what applications we will build around this. One of the interesting things we have observed is that...

Money arises out of the social constructs of homo sapiens spontaneously and even arises in primates.

You can teach monkeys about money.
You can teach dolphins about money.
You can teach grey parrots about money.

They will learn how to exchange abstract tokens for food and then use them to build social relationships.

They will also invent strong-arm robbery: beat up the other monkey, take away its pebbles, eat the bananas.

We see that same thing happen in children.

Toddlers invent money in Kindergarten. Wooden blocks, rubber bands, Pokemon cards and other little tokens that are abstractions of value.

They exchange to strengthen social bonds to express loyalty and friendship to learn about sharing.

Children will be building currencies, only this time these currencies could be global unforgeable and scalable.

A few years from now, Maria will be launching MariaCoin in her kindergarten to compete against JoeyCoin.

What is happening with this technology is astonishingly deep for some companies, it is a bit scary.

Banking has never been the most innovative sector in the world. There is a very careful balance between innovation and the conservative fiduciary duty that exists in banking, that must exist when you control other people's money.

Yet with Bitcoin, you don't control other people's money. In Bitcoin :
  • I control my money.
  • I have complete authority over my bitcoin. It cannot be seized, frozen, or censored.
  • My transactions cannot be intercepted cannot be stopped.
  • I can do so with anonymity and so can anyone else within five minutes of downloading a wallet application.
Money has changed forever. Banking has changed forever.

The idea that you can proceed in the industries of money and commerce and maintain the same conservative attitude that has existed for centuries, that is gone!

You cannot operate closed systems that have borders, that require permission to join, that limit innovation, that is controlled by the most conservative tendencies within your organization.

Now you are competing with a technology that enables exponential growth, innovation at the edges, without permission, by anyone in the world.

It is not about anyone in this room. Why? We represent the privileged elite.

I can open an online brokerage account and be trading on the Tokyo stock market within twelve hours in yen. That is a privilege that I have. About 1.5 billion people also have that privilege.

The other six billion people can operate mainly in one currency and perhaps have basic banking services.

Four billion people are significantly underbanked. An astonishing 2.5 billion people are unbanked. They will leapfrog the old system of banking. They will never have a relationship with a bank.

Every single child born today will never have a bank account. They will have a banking app. A bank app that doesn't just give them an account but that makes them a banker. An international banker in an app. They will not be permitted to open a bank account until they are at least 16-18 years old. By that time, I hope they will have at least six years of experience with digital currencies.

It is highly likely the children born today will never get a driving license because they'll have self-driving cars but they may also never use paper money. By the time they reach an age where they really start using money, there is no paper money.

It will seem as anachronistic as a fax machine or horse-and-buggy, seems to us.

Exponential innovation on a global basis giving access to the other six billion who have enormous need.

This system offers them a solution. It is not quite ready yet. It is nascent, complex and impossible to use for most people.

In 1989, I sent my first email. I needed to first compile a version of the Unix mail program using a C compiler and Unix command line skills.

I typed out my email, which was transmitted across the great internet in an astonishingly fast three days.

Exactly twenty years later, my mother replicated that experience with a swipe of her finger.

Today, Bitcoin and all of the other currencies built on that recipe are at the same development level that the internet was at in 1991.

Now we have the internet, so exponential growth has already started. Innovation is happening at an astonishing rate.

I spend every single day, full-time, trying to keep up with Bitcoin.

Just one currency, and it is almost impossible to keep up.

Do not underestimate this. Do not listen to the people who tell you that bitcoin is just for pornographers, terrorists, drug dealers and gamblers. Remember that they said the exact same things about the internet.

When you give it to two or three billion people, they are not interested in those things the media warned about.

They are interested in sharing cat videos Now we have an internet of a billion cat videos.

When you take digital currency mainstream and give it to the four billion people...

who have been isolated from international finance and commerce. you give them control of their money against despotic governments and corrupt banks that are stealing from them.

You give them the opportunity to control their future, the opportunity to transact with everyone in the world, to own title on their property in a fully transferable digital token that could be recognized everywhere.
  • They can have control over their finances that cannot be seized, frozen, or censored.
  • They will buy food, healthcare, sanitation education, and shelter, because that is what humans do.
  • They will not be denied this technology. Do not underestimate where this is going.
'The internet of money' was launched on 2009. It is coming. It is coming faster than you can imagine. It is deeper than you can fathom more sophisticated than you will immediately understand. It will take years of study just to see all of the implications. It is a gift to the entire world.

It represents the sixth greatest innovation in money, the most ancient technology of our civilization.

Thank You!