A talk about the five ages of money and why the mobile phone is the distruptive agent that will move us from Money 4.0 to Money 5.0

1. The Five Ages of Money 1 Please copy and distribute Version 1, May-31-11 We can identify four distinct ages in the history of money. Perhaps technological change is now pushing us into a fifth Copenhagen Finance IT Region

2. The Fifth Element… 2 Please copy and distribute Version 1, May-31-11 The Five Eras of Money From 1.0 to, yes, 5.0 Money 5.0 What does it mean?

3. The Ages of Money 3 Please copy and distribute Version 1, May-31-11 Money is a unit of account, a means of exchange, a store of value and a mechanism for deferred payment

4. Money—A Brief History 4 Please copy and distribute Version 1, May-31-11

5. The First Age: Atoms 5 Please copy and distribute Version 1, May-31-11 Eliminating the “double coincidence of wants” Money increases the efficiency of trade Lots of things can be money Lumps of stone Iron tools Copper ingots Some things work better than others Gold, silver and a few other things

6. Some Atoms Standardisation supported trade and growth 6 Please copy and distribute Version 1, May-31-11

7. The Second Age: Atoms about Atoms 7 Please copy and distribute Version 1, May-31-11 Moving things around is a hassle Collective memory Grain stores Goldsmiths Move the claim, not the land The invention of central banking

8. Some Atoms about Atoms Monetising the stores of value 8 Please copy and distribute Version 1, May-31-11

9. Third Age: Bits about Atoms 9 Please copy and distribute Version 1, May-31-11 One of the first uses of the telegraph The first electronic funds transfers Money faster than a horse or a train Telegraph traffic peaked in 1929 Telegrams ended in 2007 But Western Union is still around People were transferring £, $, Dm, ¥… But they were all backed with gold and silver

10. Some Bits about Atoms Ideas born in this era still shape our thinking 10 Please copy and distribute Version 1, May-31-11

11. Fourth Age: Bits about Bits 11 Please copy and distribute Version 1, May-31-11 The rise of the fiat currency All money is e-money Well, almost (97.3% in the UK) That e-money is a “promise to pay” The means of exchange is evolving We all know it’s going mobile Remote control for “wallet in the cloud” Moving away from fiat currencies? Kivas Goldmoney

12. Some Bits about Bits It will be the mobile phone that ends cash 12 Please copy and distribute Version 1, May-31-11

13. A Fifth Age? Bits 13 Please copy and distribute Version 1, May-31-11 Money is about to change again It may become truly virtual, bits and nothing more What kinds of bits? World of Warcraft gold pieces? Facebook credits? Reputations? Bitcoin Digital mining

14. Some Bits Zynga had revenues of $850m last year 14 Please copy and distribute Version 1, May-31-11

15. Where Next? 15 Please copy and distribute Version 1, May-31-11 Maybe using notes and coins will be like drinking and driving – it will still go on, but nice people won’t do it

16. Just One Example Winner of the “smart banknote” design 2011 16 Please copy and distribute Version 1, May-31-11

17. Thank You 17 Please copy and distribute Version 1, May-31-11 Any (More) Questions?

18. Contact Details 18 Please copy and distribute Version 1, May-31-11 Dave BirchDirectorConsult Hyperion dave.birch@chyp.comtwitter @dgwbirch