Bitcoin is two things: a digital currency AND a new technology. In this course I'll give you the tools to think intelligently about the technology of Bitcoin, and the skills to buy, trade, and store your digital currencies. Online course: https://onemonth.com/courses/bitcoin Bitcoin vs. Ethereum https://learn.onemonth.com/bitcoin-vs-ethereum/ Join Coinbase https://www.coinbase.com/join/5341c04e2e00c46d2100006c

1. Bitcoin, Ethereum and Blockchain
Chris Castiglione
Digital Literacy at Columbia University
School of Business

2. WHAT IS BITCOIN?

3. Bitcoin is two things: digital currency and a technology.

4. BITCOIN IS NOT A PHYSICAL COIN

6. The U.S Dollar is already a digital currency

8. $60 trillion dollars
MONEY SUPPLY

9. $60 trillion dollars
$6 trillion is in cash or coins
MONEY SUPPLY

10. $60 trillion dollars
$6 trillion is in cash or coins
Which Means that…
10% of money is physical money
MONEY SUPPLY

11. $60 trillion dollars
$6 trillion is in cash or coins
Which Means that…
10% of money is physical money
Therefore, 90% of all money is nothing more than entries
in a computer server.
MONEY SUPPLY

12. $60 trillion dollars
$6 trillion is in cash or coins
Which Means that…
10% of money is physical money
Therefore, 90% of all money is nothing more than entries
in a computer server.
MONEY SUPPLY

13. 90% OF MONEY IS
A DIGITAL CURRENCY ON A LEDGER

14. Controlled by a central authority
“Standard” fees apply
Prone to fraud
Controlled by the network
Lower fees
Higher security
BTC
Banking

15. “Saying Bitcoin is like digital money is like
saying the internet is a fancy telephone.”
- Andreas Antonopoulos

16. HOW DOES THE BITCOIN
TECHNOLOGY WORK?

17. Decentralization: No permission is needed from a central
authority to post anything on the web, there is no central
controlling node, and so no single point of failure.

19. Bitcoin is maintained on a file called a ledger

20. Bitcoin is maintained on a file called a ledger

21. BLOCKCHAIN
is one particular type of distributed ledger.

22. BLOCKCHAIN
a combination of proven technologies applied in a new way.
1. Private Key Cryptography
2. P2P Network
3. The Blockchain Protocol

23. BLOCKCHAIN
1. Private Key Cryptography

24. BLOCKCHAIN
2. The P2P Network
Centralized Control
Distributed Control

25. BLOCKCHAIN
3. The blockchain protocol

26. is that it allows many entities who do not know one another to reliably
reach consensus about the state of the bitcoin blockchain.
BITCOIN'S INNOVATION

28. THE TECHNOLOGY OF THE INTERNET
HAS CENTRALIZATION PROBLEMS,
BLOCKCHAIN PROPOSES A SOLUTION

29. ARPANET IN DECEMBER 1969

30. ARPANET IN 1970

31. ARPANET GOES INT’L 1973

32. THE GLOBAL INTERNET IN 1993

33. CONFLICTING DIAGRAMS

34. THE PRIVATIZATION OF THE INTERNET BACKBONE

35. TOP ISPS BY STATE

36. TOP LEVEL
DOMAINS

37. BLOCKED

38. CENSORSHIP

39. INTERNET ACCESS DISRUPTED IN 2008

40. WHERE DID BITCOIN COME FROM?

41. Digicash (1990)
Hashcash (1997)
B-Money (1998)
BitGold (1998)
DIGITAL CURRENCIES BEFORE BITCOIN

42. Satoshi Nakamoto released a
Bitcoin white paper in 2008.
The 8 page paper announced the
vision for a decentralized digital
currency.
2008
BITCOIN WHITE PAPER

43. 2009
In January 2009, the bitcoin network came into existence with the
release of the first open source bitcoin client and the issuance of the
first bitcoins, with Satoshi Nakamoto mining the first block of bitcoins
ever (known as the genesis block), which had a reward of 50 bitcoins.

44. The First Bitcoin Transaction
2010

45. The First Bitcoin Transaction
On May 22nd 2010,
Laszlo Hanyecz paid
10,000 BTC
for two Papa John’s pizzas.
2010

46. $50,000,000+
2010

47. FEBRUARY 2011
1 BTC = $1 USD

48. JUNE 2011
In June 2011 Wikileaks began to accept bitcoins for donations.

49. 1 BTC = $250 USD
APRIL 2013

50. 1 BTC = $1200 USD
NOVEMBER 2013

51. DECEMBER 2013
Mt. Gox - a bitcoin exchange based in Tokyo, Japan.
Was handling over 70% of all bitcoin transactions
worldwide, as the world's leading bitcoin exchange

52. MARCH 2014
Mt. Gox announced that approximately
850,000 bitcoins belonging to customers
and the company were missing and likely
stolen, an amount valued at more than
$450 million at the time

53. MARCH 2014

54. JULY 2015
In November 2012, WordPress had started
accepting bitcoins.
In December 2013, Overstock.com
In July 2014 Newegg and Dell started
accepting bitcoin.
As of August 2015 it was estimated that
160,000 merchants accept bitcoin
payments

55. AUGUST 2016
In August 2016, a major bitcoin exchange,
Bitfinex, was hacked and nearly 120,000
BTC (around $60m) was stolen.

56. AUGUST 2017
On August 1st, 2017 bitcoin split into two
derivative digital currencies, the classic
bitcoin (BTC) and the Bitcoin Cash (BCH).
vs.

57. WHO’S USING BITCOIN?

58. EARLY DAYS, THE ROADS ARE BEING BUILT

59. overstock.com
expedia.com
newegg.com
Shopify Stores
Dish
Wordpress Sites

65. “WE WANT TO MAKE DUBAI THE FIRST BLOCKCHAIN-POWERED
GOVERNMENT IN THE WORLD BY 2020,”
-Aisha Bin Bishr, director general of Smart Dubai
“THE AIM IS TO REPLACE PAPER-BASED CONTRACTS
WITH SMART CONTRACTS THAT WILL HELP REDUCE
COMPLEX DOCUMENTATION FOR THE TRACKING,
SHIPPING AND MOVEMENT OF GOODS,”

67. PUBLIC KEYS

68. A public key is your Bitcoin address

70. PRIVATE KEYS

71. Do you own Bitcoin?

72. The truth is, you never own bitcoin.
All you own is a private key

73. A private key is a secret number that allows bitcoins to be spent.

74. A private key in the context of Bitcoin is a secret
number that allows bitcoins to be spent.
5HpHagT65TZzG1PH3CSu63k8DbpvD8s5ip4nEB3kEsreKamq6aB

75. COINBASE KEEPS YOUR
PRIVATE KEYS

76. COINBASE KEEPS EVERYONE’S
PRIVATE KEYS

77. NEVER LEAVE YOUR MONEY
AT THE EXCHANGE

78. 1. Hackers
2. Government regulation
3. The exchange itself
Exchanges are vulnerable to:

79. EXCHANGES ARE VULNERABLE TO
1. Hackers

80. EXCHANGES ARE VULNERABLE TO
1. Hackers

83. EXCHANGES ARE VULNERABLE TO
2. Government regulation

84. EXCHANGES ARE VULNERABLE TO
2. Government regulation

85. EXCHANGES ARE VULNERABLE TO
2. Government regulation

86. EXCHANGES ARE VULNERABLE TO
2. Government regulation

87. EXCHANGES ARE VULNERABLE TO
2. Government regulation

88. EXCHANGES ARE VULNERABLE TO
2. Government regulation
• June 24, 2015
• a business license of virtual
currency activities
• Benjamin Lawsky (NYSDFS)
Bitlicense

89. EXCHANGES ARE VULNERABLE TO
2. Government regulation

90. EXCHANGES ARE VULNERABLE TO
2. Government regulation
WATERMARK
WATERMARK
WATERMARK
WATERMARK

91. EXCHANGES ARE VULNERABLE TO
3. The exchange

92. EXCHANGES ARE VULNERABLE TO
3. The exchange

96. • Connected to the Internet
• Centralized
• The exchange holds your public key
HOT WALLET COLD STORAGE
• Not connected to the Internet
• Distributed (or not-centralized)
• You now your public key

97. WARM WALLET?

98. Trezor.io
COLD WALLET
aunt knuckle italics moisture hawk thorn iris abort
chlorine smog uphill glass aptitude nowhere
sewage plywood dual relic fierce divers anvil
nodes bubble cabin abort
24 word recovery seed
5HpHagT65TZzG1PH3CSu63k8DbpvD8s5ip4nEB3kEsreKamq6aB

99. HOW NOT TO LOSE YOUR COINS

100. 1. MOVE MONEY INTO YOUR
COLD STORAGE WALLET

101. 2. HAVE A BACKUP OF
YOUR PASSWORD
& CHECK ON YOUR
BACKUPS

102. 3. USE A PASSWORD
MANAGER

103. 4. USE 2-FACTOR
AUTHENTICATION

104. 1. Move money into your cold storage wallet
2. Check on your backups
3. Use a password manager
4. Use 2-Factor authentication
HOW NOT TO LOSE YOUR
COINS - A CHECKLIST

105. THE DECENTRALIZED WEB

106. ARPANET IN DECEMBER 1969

107. ARPANET IN 1970

108. ARPANET GOES INT’L 1973

109. By October of 1990, Tim had written the three
fundamental technologies that remain the foundation of
today’s web (and which you may have seen appear on
parts of your web browser):
HTML: HyperText Markup Language. The markup
(formatting) language for the web.
URI: Uniform Resource Identifier. A kind of “address”
that is unique and used to identify to each resource on
the web. It is also commonly called a URL.
HTTP: Hypertext Transfer Protocol. Allows for the
retrieval of linked resources from across the web.
TIM BERNERS-LEE INVENTED THE WORLD WIDE WEB IN 1989.

110. Decentralization: No permission is needed from a central
authority to post anything on the web, there is no central
controlling node, and so no single point of failure … and
no “kill switch”! This also implies freedom from
indiscriminate censorship and surveillance.
Non-discrimination: If I pay to connect to the internet
with a certain quality of service, and you pay to connect
with that or a greater quality of service, then we can
both communicate at the same level. This principle of
equity is also known as Net Neutrality.
Bottom-up design: Instead of code being written and
controlled by a small group of experts, it was developed
in full view of everyone, encouraging maximum
participation and experimentation.
THE VISION OF THE WORLD WIDE WEB

112. THE GLOBAL INTERNET IN 1993

113. THE PRIVATIZATION OF THE INTERNET BACKBONE

116. THE BIG THREE

118. MUSIC'S LOST DECADE: SALES CUT IN HALF

121. WHAT’S THE PROBLEM
WITH MONEY?

122. 1. CURRENCY IS NOT STABLE

123. Indian Prime Minister
Narendra Modi has
announced that the 500
($7.60) and 1,000 rupee
banknotes will be withdrawn
from the financial system
overnight.
9 November 2016
INDIA SCRAPS 500 & 1000 RUPEE BANK NOTE OVERNIGHT

124. The pound's dramatic fall
started overnight as the
outcome of the referendum
became clear.
At one stage, it hit $1.3236,
a fall of more than 10%.
24 June 2016
POUND PLUNGES

125. China’s central bank devalued
the country’s currency, the
renminbi, by about 2%
against the U.S. dollar.
Aug 11, 2015
CHINA DEVALUES ITS CURRENCY BY 2%

126. 2. CENTRAL BANKS HAVE TO CLEAR
OUR TRANSACTIONS

127. ALTCOINS

130. CRYPTOCURRENCIES

131. ALTCOINS

133. Bitcoin
(BTC)
BITCOIN • Supply: 21 million bitcoins mined by 2140
• Smallest unit: 1 Satoshi = 0.00000001 BTC
• Speed: New tokens mined every 10 minutes
• Governance: Users, Developers, Miners (95%)
• Transaction Fees: Roughly 110 satoshis/byte
• Block size: 2MB
• Trajectory of Infrastructure: Allows mining and mining pools
• Privacy: Transactions are listed publicly the blockchain
• User-friendly: Yes

134. Bitcoin
(BTC)
Litecoin
(LTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES

135. Bitcoin
(BTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES
Litecoin
(LTC)

136. Bitcoin
(BTC)
Litecoin
(LTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES

137. Bitcoin
(BTC)
Litecoin
(LTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES

138. Litecoin
(LTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES
Bitcoin
(BTC)

139. Litecoin
(LTC)
Bitcoin Cash
(BCH)
Dash
(DASH)
Monero
(XMR)
Zcash
(ZEC)
Ripple
(XRP)
CRYPTOCURRENCIES
Bitcoin
(BTC)

145. TOKENS

147. Ethereum
(ETH)
ETHEREUM
• Ether (ETH) is the token
• Used for writing smart contracts

148. Ethereum
(ETH)
Ethereum Classic
(ETC)
ETHEREUM VS. ETHEREUM CLASSIC

149. SMART CONTRACTS
If thiS -> then that

150. SMART CONTRACTS

151. SMART CONTRACTS
If thiS
-> then that

152. SMART CONTRACTS
If thiS
-> then that

154. DAPPS

155. DAPPS

156. DAPPS

157. TOKENS

158. ICOS
& INVESTING IN CRYPTO

159. • There will only ever be 21 million bitcoins mined
• By 2140
• Deflationary
WHY IS BITCOIN SO VALUABLE?

161. HTTPS://BLOCKCHAIN.INFO/ADDRESS/
17XNHWPPUSDH5FJEJRETRUV4G3WY1QGSC3

162. SHOULD I BUY BITCOIN?

163. • Where to purchase bitcoin
• How to store bitcoin
• Why it exists
“SHOULD I BUY [SOME NAME OF ASSET]?”
Before you buy bitcoin (or any cryptocurrency) you should at least know

164. GO TO AN EXCHANGE

166. THE 5 TYPES OF
PEOPLE INVESTED IN BITCOIN

167. 1. User
2. Miner
3. Developer
4. Investor
5. Business Owner
5 TYPES OF PEOPLE

168. WANT TO LEARN MORE ABOUT
BITCOIN, BLOCKCHAIN & ETHEREUM?

169. One Month Bitcoin & Ethereum (Online Course)
https://onemonth.com/courses/bitcoin
The Rise and Rise of Bitcoin (Documentary)
Tim Ferris Podcast Episode #244
The Quiet Master of Cryptocurrency — with Nick Szabo
This Week in Ethereum Newsletter
http://www.weekinethereum.com/
You can purchase Bitcoin at Coinbase
coinbase.com
RESOURCES

170. JOIN COINBASE NOW AND
GET $10 OF FREE BITCOIN

171. One Month Bitcoin & Ethereum (Online Course)
https://onemonth.com/courses/bitcoin
LEARN ONLINE WITH ONE MONTH