Money. Currency. Bitcoin.

Nadav Rosenberg
nadav.rosenberg@gmail.com

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 The passion for Money

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 Agenda

- What is Money?

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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 The story of the Rai stones at Yap
Yap Island in Micronesia Currency at Yap

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 Money is a concept

Money is a social concept enabling

transfer of purchasing power
- Social
- Concept
- Purchasing power

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 Literally, Money means Purchasing Power

Money = Purchasing Power

- Time is Purchasing Power

- Purchasing Power never sleeps

- Purchasing Power cant buy love

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 The features of Money

- Unit of account
- Medium of exchange
- Store of value
- Accounting system

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 As a concept Money is similar to Language

Language is a social concept enabling

transfer of messages
(Money is to Commerce what Language is to Communication)

- Transfer of knowledge
- Mass communication
- Large scale cooperation

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 Agenda

- What is Money?

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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 Currency is a Tool
Currency is a set of symbols that
represents purchasing power

- Stones
- Gold Pieces
- Dollars
- Bitcoins

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 Currencies

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 Currency doesnt have to be

Of intrinsic value

Backed by a government

A legal tender

Accepted as tax

Accepted by everyone

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 Currency has to be

A set of symbols

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 Currency is similar to Language

Language is a set of symbols that

represents things, actions, and
attributes

- English
- Japanese
- C++

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 Examples of Currencies and Languages
Currency Examples Payment Language Examples Delivery

Salt Raw Material

Human
English Verbal
Commodity
Shells Coins Japanese Written
Gold French Signs

Dollar Coins
Computer
C++ Cards
Fiat (Gov.)
Yen Notes Java Digital
Pounds Digital Python

Crypto
Bitcoin Digital
Litecoin

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 5 requirements for a perfect Currency
Requirement So that

Limited
Final number of symbols No one can steal your relative
purchasing power

Fungible
Symbols are interchangeable. You can trade with anyone,
A=B, B=A. anytime

Durable
Symbols can survive time You can save your purchasing
and weather power or pass it on

Divisible
Symbols are easily divisible It can represent also small
to smaller parts things

Symbols can be easily Its practical to use

Transferable
transferred

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 Agenda

- What is Money?

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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 Bitcoin is two things

Bitcoin is both a protocol and a

currency

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 Protocol
Think Internet. Network. Infrastructure. Technology.

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 Currency.
Think email. (but also other applications)

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 Bitcoin uses a Public Ledger

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 Agenda

- What is Money?

- What is Currency?

- What is Bitcoin?

- Comparing Currencies & the Bitcoin economy

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 Receiving Currency
20 Rai 20 Gold Coins 20 Digital 20 BTC
Us
er
$
Us Us
er er

Us Us
er er
Physical symbol in Physical symbol in Abstract symbol in Abstract symbol in
limited supply limited supply limited supply limited supply

Not very clear who Clear to you that 3rd Party is making Everyone knows that
owns it. you have it and sure that you have you have it and that
that the one gave it it and that the one the one gave it to you
to you doesnt gave it to you doesnt have it
have it anymore doesnt have it anymore
anymore

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 Good

Comparing Currencies Bad

Rai Stones Gold Dollar Bitcoin

Limited

Fungible

Durable

Divisible

Transferable

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 The Bitcoin Economy
Commerce: Cross Border:
- Micro transactions - Remittances
- Banking - SMEs
- Shift of Risks - Decentralised
- Lower Transaction corporations
Costs - P2P lending

Political:
- Small Governments Deflation:
- Efficiency - Saving
- Creative Destruction - Positive ROI
- Balanced Global Economy - Durable goods
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 Progress

Progress is driven by entrepreneurs and

the human spirit, not by currency supply!

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 nadav.rosenberg@gmail.com

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