4. What We Will Cover
1. Why this webinar
2. History of bitcoin
3. What exactly is bitcoin
4. What is bitcoin used for
5. Bitcoin use cases
6. Bitcoin wallets
11. Bitcoin is Not the First Cryptocurrency
Digicash: Created by David Chaum in 1990. First type of money that allowed
people to make anonymous transactions. The company went bankrupt in 1998
before gaining sustainable traction
Bitgold: Created in the late 90’s by Nick Szabo. Used “Proof of Work” algorithm
that was similar to the one being implemented by bitcoin today
14. 2008 Financial Crisis
● Banks were selling opaque financial products of questionable value (partially
thanks to the 1999 Glass-Steagal Act Repeal)
● Credit agencies were not properly assessing the risk of mortgage back
securities
18. What is bitcoin?
Type of Cryptocurrency
Peer-to-peer which means transactions
happen without a third party. Alice can send
money directly to Bob
Trustless, distributed ledger
23. Recap: What Bitcoin Is Not
Centralized, there is not a person, bank, or committee which
controls the ledger.
There is not a limitless supply of bitcoin- bitcoin circulation is
capped at 21 million. Crisis be damn.
Opaque, anyone can access the bitcoin ledger
Recommended Viewing: How the Economic Machine Works
29. Bitcoin in Venezuela
Currently plagued by inflation, which is set to hit
1,600 percent
Food shortages are extreme
However, electricity is free and many of the
population has “mined” bitcoin
Traveling agencies, and stores accept bitcoin
30. Bitcoin in Afghanistan
Fereshteh Forough, founder of Code to
Inspire, used bitcoin to pay her mostly
all-women staff. It was simply to difficult to
dangerous for her employees to cash their
checks in a bank.
31. Bitcoin Remittances
● Sending remittances is a 400 billion
dollar industry
● In Somalia and Haiti remittances make
up a quarter of the national income
● Transactions fees are on average 7.45%
● Services like Abra greatly reduce the
cost of sending money
33. How the IRS Treats Bitcoin
Bitcoin is treated as property
Subjected to capital gains tax
34. Where does Bitcoin fit in?
● Use bitcoin for a store of value, as opposed to a currency I use to
make everyday purposes.
● Tend to keep my bitcoin, which in cryptocurrency community
parlance is called ‘HODL’
● Bitcoin grew by 500%
37. Public and Private Keys
Each user has private and public keys
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38. There are Several Different Types of Wallets
“Hot” Wallet
Paper Wallet
“Cold Storage” Wallet
A wallet is where you keep receive, store and send bitcoin. It operates just like a regular wallet
you have in your purse or pocket
52. Yes, But...
● Coinbase and other hosted wallets allow you to purchase bitcoin using your
debit and credit card
● Easiest and fastest way to obtain bitcoin
● Coinbase refunds your bitcoin if your account is hacked