Why Bitcoin's Rate of Adoption is Only Going to Increase
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Bitcoin allows for instant, nearly free money transfers globally without intermediaries. It uses an open-source, decentralized network secured by cryptography. Growth in bitcoin users, transactions, merchants, and price has been exponential. Valuing bitcoin based on replacing remittances, online gambling, or Amazon transaction fees could value each bitcoin from $2,000 to $42,000, though current market size values it around $350. The bitcoin ecosystem is growing rapidly with startups, VC investment, ATMs, mobile apps, and integration into traditional banking and finance.
Why Bitcoin's Rate of Adoption is Only Going to Increase
- 2. Good Money
- 3. Why Bitcoin? “For the first time in the history of the world, anyone can now send or receive any amount of money with anyone else, anywhere, instantly, basically for free, and it is impossible for anyone, including governments, to stop them. ”
- 4. How? Open and decentralized network Open code and transparent protocol Public record of all transactions Blockchain Protocol Client Network
- 5. Bitcoin in 5 minutes 1. Get a wallet 2. Buy bitcoins 3. Spend bitcoins …nearly a million websites
- 6. Wallets
- 7. Be safe! Bitcoin gives you unprecedented control over your money. That is a great responsibility. -Keep your private keys safe -Make backups -Hold your bitcoins yourself! -Be careful who you trust with your bitcoins -Multi- Signature
- 8. Regulation Regulation of exchanges, acceptance of protocol. Free speech and censorship. Currency, digital commodity, or prepaid instrument?
- 10. Growth: Price
- 13. www.purse.io
- 14. 2010 – Pizza 2011 – Hackers Evolution
- 15. 2012 – Consolidation 2013 – Limelight Evolution
- 16. 2014 – Ecommerce 2015 - Wall Street? Evolution
- 17. Valuing Bitcoin Amazon Revenue 2014: $88.9 billion 3% average transaction fee Amazon pays $2.6 billion a year in transactions fees. Amazon nets $1 billion per year. Amazon could double their profits by doing all transactions in Bitcoin. If the market cap for Bitcoin was $89 billion, each Bitcoin would be worth $6,300.
- 18. Valuing Bitcoin Gambling The online poker market is $4.8 billion a year industry. Online gambling will follow poker and is a $30 billion a year industry If the market cap for bitcoin was $30 billion, each bitcoin would be worth $2,142.
- 19. Valuing Bitcoin Remittances International remittance is the transfer of money by a foreign worker to their home country. In 2014 global remittances were over $600 billion dollars. Western Union fees for remittance can run from about 4 percent to 20 percent or more. If the market cap for Bitcoin was $600 billion, each bitcoin would be worth $42,800.
- 20. Valuing Bitcoin Amazon = $6,300 Gambling = $2,140 Remittances = $42,800 Bitcoin adoption world wide = ??????
- 22. Valuing Bitcoin Present value There are currently approximately 10 million Bitcoin users (doubling each year at current growth rate). There are currently 14 million bitcoins in circulation. If each user is on average willing to hold $500-$1000 worth of value in Bitcoin, the total market cap of Bitcoin would range from $5-10 billion. With 14 million coins in circulation this would give us a present value of $357-714 per bitcoin, based exclusively on current market size.
- 23. Markets
- 24. Second Generation Exchanges Transparency - External Audits Proof of reserves - No fractional reserve P2P Exchanges …distributed exchanges coming in 2015!
- 28. VC Investment
- 29. ATMs
- 30. Bank integration
- 31. Mobile
- 34. Philanthropy
- 35. Micropayments
- 36. Social Networks ChangeTip allows 300Mn Twitter users and 1.4Bn Facebook users to instantly send and receive bitcoins.
- 38. Games
- 39. E-Sports
- 40. History
- 41. Financial Markets 2013 Bitcoin CFDs 2014 Bitcoin Derivatives 2015 Bitcoin ETFs 2016 ??
- 42. Financial Markets 2.0 P2P Currency P2P Payments P2P Lending (beta) P2P Markets (beta) P2P Funding (beta) P2P Contracts 2015 P2P Law ?