Bitcoin is Money Without Government

1. Jon Matonis
Executive Director
Bitcoin Foundation

2. Giant Stone Money Of Yap
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3. Search For Extraterrestrial Intelligence
(SETI)
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4. Bitcoin Network Computational
Power
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5. What Happens When
Trust Becomes
Decentralized?
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6. What Is Bitcoin?
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7. Bitcoin Is Disruption Within
Disruption
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 Supreme disruption in payments occurs when
a new monetary unit is introduced
 Capital “B” Bitcoin is a distributed network
without the need for a third party
 Small “b” bitcoin is a new monetary unit of
account on this network
 Bitcoin sparks currency competition with
national issuers

8. De-Central Banking Is The
Future
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9. Bitcoin Active Nodes Worldwide
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10. Bitcoin Benefits For Consumers
 Currency of youth (18-27 years old)
 Truly global and banks not required
 Not centrally controlled by governments
 Protection from financial surveillance
 Analog equivalent rights (cash-like)
 Paper Cash to Digital Cash
Anonymous Private
Untraceable Personal
Irreversible Final
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11. Bitcoin Benefits For Merchants
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 Extend acceptance to countries not reached by
Visa, MasterCard, and PayPal (60+)
 Provide payment method for the unbanked
 Not subject to payments embargo
 No disallowed merchant categories codes (MCCs)
 Eliminate chargeback and fraud risk
 Processing fees approaching zero
 Near immediacy of settlement
 Obtain free publicity

12. We Don’t Need
Kings To Coin
Our Money
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13. The Post-Legal Tender Era
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 The power of decentralization alters and
outlives traditional political institutions
 Monetary policy impact
 Fiscal policy impact

14. Monetary Policy Impact
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 No Fractional Issuance - fractional reserve
banking becomes nearly impossible without
the emergence of money substitutes
 Healthy Deflation - opportunistic and
unrestrained inflation gives way to natural
deflation
 Reduction in detrimental business cycles -
interest rates respond more to the risk of the
lending activity rather than central bank open
market operations

15. Fiscal Policy Impact
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 De-emphasize Income Tax - governments
gradually shift from taxing income to taxing
consumption
 Check on Spending - government spending
becomes constrained by actual revenue
raised, which means that unpopular
expenditures will be difficult to fund

16. Early Use Cases For Bitcoin
 Argentina
 Cyprus
 Kenya
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17. The Post-Legal Tender Era
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 Absence of a financial intermediary radically
transforms current industries
 Retail payments go mobile
 Interbank transfers go point-to-point
 Asset management becomes personal

18. Bitcoin Mobile Is Here Today
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19. Bitcoin Is Being Spent More Than
Ever
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20. Bitcoin Advancing On Other Networks
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21. XBT Is Proposed ISO Currency Code
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22. Quotes From
Establishment
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“Bitcoin is the beginning of
something great: a currency without a
government, something necessary and
imperative.” -Nassim Taleb
“I think the fact that within the bitcoin
universe an algorithm replaces the
functions of [the government]… is
actually pretty cool.” -Al Gore
“I think [bitcoin] is a technical tour
de force.” -Bill Gates

23. Quote From Me
“Bitcoin is to legal tender
as BitTorrents are to copyrights.”
- Jon Matonis
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24. Thank You
Twitter: jonmatonis
Email: jon@bitcoinfoundation.org
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