Professional Documents
Culture Documents
Casey Botticello
President of The Cryptocurrency Alliance
Super PAC
© Copyright 2018. All Rights Reserved. Paid for by the Cryptocurrency Alliance Super PAC. Not Authorized
by any Candidate or Candidate's Committee.
PRESENTED BY
T H E C RY P TO C U R R E N C Y
ALLIANCE
Presentation Roadmap
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Cryptocurrency
in the United
CCA Super PAC
Te c h n o l o g y
International
Adoption and
Bitcoin and
Regulation
States
Financial
Markets
Beyond
01 02 03 04 05 06
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About The Cryptocurrency Alliance Super PAC
Cryptocurrency Alliance
The Cryptocurrency Alliance is an independent
expenditure-only committee (Super PAC),
founded by cryptocurrency investor and
blockchain advocate Casey Botticello. 4
The Cryptocurrency Alliance Super PAC was
created to raise awareness about
cryptocurrencies and blockchain technology,
Section 1 counter the relentless propaganda espoused
by the global banking elite who are threatened
by a decentralized currency, and to oppose
legislation and political candidates who intend
to regulate cryptocurrencies at the expense of
consumer privacy.
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Cryptocurrency Alliance Strategy
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Political
Advocacy
Cryptocurrencies Countering 5
Education threaten the existing Propaganda
financial system, which
Cryptocurrencies and There are many
Blockchain Technology has resulted in an politicians and public
are poorly understood extensive lobbying figures who have little
by the general public. campaign by financial understanding of
One of our goals is to cryptocurrencies (or
provide resources and institutions trying to feel threatened by
information to help maintain control of the their existence),
voters understand global banking system. resting in a stream of
these concepts. political propaganda
We aim to inform we hope to counter.
voters of the facts
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behind cryptocurrency.
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“ Bitcoin and the underlying blockchain
technology promote an uncensored
network where all can participate with
equal access ” 6
Casey Botticello
President,
Cryptocurrency Alliance
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What is Cryptocurrency and Blockchain Technology?
To p i c s C o v e r e d :
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• What is cryptocurrency?
• What is the blockchain?
• What are the layers of the blockchain?
Section 2
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What is Cryptocurrency is a
medium of exchange
Cryptocurrency? created and stored
electronically in the
blockchain, using 8
encryption techniques to
control the creation of
monetary units and verify
the transfer of funds.
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How Cryptocurrency Works
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What is Blockchain?
Disaggregated Network
Blockchain is a distributed ledger of The distributed ledger is run by a disperse network of participants. There is
no central authority like a traditional financial intermediary.
peer to peer transactions that
Distributed Ledger
allows for secure record storage.
Blockchain forms the technical
A blockchain is a public ledger that provides information of all the participants and all
digital transactions that have ever been executed. 10
backbone for cryptocurrencies such Security
By comparing the hash of the data the authenticity of the data can be
as Bitcoin but also has broad verified which helps in achieving an independently verifiable system.
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Key Features of Blockchain Technology
Programmability
Some blockchains
Propagation allow for program Permanence 11
There are many copies code to be stored on With each user having
of a blockchain ledger, them, as well as their own copy of the
and no ‘master’ copy. All ledger, truth is determined
participants have access ledger entries – by consensus. Past
to a full copy of the transactions cannot be
ledger and all copies are
creating automatic edited without the consent
identical and equivalent. journal entries that of the majority, meaning
No one party has control that blockchain records are
of the ledger. New
execute automatically permanent. The entire
transactions can be when triggered. ledger is stored by each
participant and can be
posted quickly and will
propagate to all These are the so- inspected and verified.
participants’ copies called “smart
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contracts.”
Blockchain and Distributed Ledger Technology
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Content Contract
What kind of transactions How can we animate the
do we accept? transaction history so
that events trigger
predetermined actions?
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Communications
How are transactions created
and propagated inside and
between organizations? Consensus
How do we maintain the
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integrity of the transaction
history across organizations?
The Four Layers of the Blockchain
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Security
Security is achieved at the consensus layer, and
requires building a consensus function that
cannot be fooled into accepting an alternate
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ledger without using a majority of all existing
resources
The Consensus Layer
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Liveness
Liveness is achieved at the mining layer, and 2
requires there to be enough incentive for
participants in the network to continually
confirm new blocks
The Mining Layer
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02
Stability 3
Stability is achieved at the propagation layer,
and requires nodes to be able to quickly Propagation Layer
disseminate confirmed blocks to other nodes 03
so that they know to build on the most
recent blocks instead of older, stale blocks
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Correctness
Correctness is achieved at the semantic layer, The Semantic Layer
where blocks have a meaning, which could range
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from sending currency between parties as in
Bitcoin to encoding state transitions in a state
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machine as in Ethereum, and where this meaning
is validated by nodes to conform to the
specification stating how new blocks must relate
to previous blocks
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The Creation of Bitcoin and Other
Cryptocurrencies
To p i c s C o v e r e d :
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• How was the first cryptocurrency developed?
• How did cryptocurrencies other than Bitcoin
Section 3 evolve?
• What are the applications of blockchain
transactions?
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THE IDE A THAT CHANGED THE WORLD 15
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INSPIRATION DEVELOPMENT EVOLUTION APPLICATION 16
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INSPIRATION
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Background
• It’s late 2008, and the global financial crisis is
causing shock waves around the world. Anger at the
worldwide banking industry, governments and other
centralized authorities has reached fever pitch.
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Satoshi explains how the global financial system is flawed…
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transactions records
• No mechanism exists to make • Unlike traditional currencies like • To overcome the double spending
payments over a communications the US dollar, Bitcoin doesn’t problem which results in a reliance
channel without a trusted party have a central bank to ‘print’ or on intermediaries and a whole new
produce more currency set of issues (inability to make non-
• Satoshi proposes an electronic
reversible transactions, increased
payment system based on • To introduce more bitcoins into
costs, etc.), Satoshi proposes a new
cryptographic proof instead of the network and motivate
electronic payment system that
trust, allowing any two willing people to keep the system
relies on sophisticated computer
parties to transact directly with honest, miners are rewarded
encryption (cryptography) instead
each other without the need for a with new bitcoins
of the trust generated by expensive
trusted third party
and slow intermediaries
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Proof of Work
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Tie each feature to the value it
will provide to users
Timestamp Server
Satoshi also outlines a Tie each feature to the ways it will
improve the user experience and
cryptographic payment solve users’ problems
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Bitcoin is introduced, solving many of the problems
described…
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Payment
Independence and Counterfeit-proof Anonymity and Identity Security, Control, and
Low Transaction Theft Protection Transparency
Fees
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DEVELOPMENT 22
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The Creation and Before disappearing from any involvement in bitcoin,
Early Use of Bitcoin 04
Nakamoto in a sense handed over the reins to
developer Gavin Andresen, who then became the
bitcoin lead developer at the Bitcoin Foundation
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Bitcoin Growth (2009-2018)
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In 2014, Zynga announced it was testing
On August 6, 2010, a major bitcoin for purchasing in-game assets in
vulnerability in the bitcoin In 2012, the Bitcoin seven of its games. That same month,
protocol was spotted. Foundation was launched. The D Las Vegas Casino Hotel and Golden
Transactions weren't properly BitPay reported having over Gate Hotel & Casino properties in
verified before they were 1,000 merchants accepting downtown Las Vegas announced they
included in the transaction log. bitcoin under its payment would also begin accepting bitcoin. The
This was the only major security processing service. Bitcoin network rate exceeded 100
flaw found and exploited in is discussed by Jim Cramer petahash/sec. TigerDirect and
bitcoin's history. on CNBC’s Mad Money. Overstock.com started accepting bitcoin.
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In 2016, the network rate exceeded 1 exahash/sec.
The Cabinet of Japan recognized virtual currencies like bitcoin
as having a function similar to real money. In July 2016, South Korea brought in a regulation that
researchers published a paper showing that by November requires all the bitcoin traders to reveal their
2013 bitcoin commerce was no longer driven by "sin" activities identity, thus putting a ban on anonymous
but instead by legitimate enterprises. Uber switched to bitcoin trading of bitcoins. With two major
in Argentina after the government blocked credit card improvements, SegWit and the Lightning
companies from dealing with Uber. Network, live on the mainnet, the challenge
for the Bitcoin development community will
2016 be to continue pushing out improvements in
2018 and beyond.
2018
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2015 2017
In 2015 Coinbase raised 75 million Japan passed a law to accept bitcoin as a
USD as part of a Series C funding legal payment method, and Russia has
round. In February 2015, the announced that it will legalize the use of
cryptocurrencies such as bitcoin. And
number of merchants accepting
Norway’s largest online bank,
bitcoin exceeded 100,000. Skandiabanken, integrates bitcoin
In October 2015, a proposal was accounts.[In March 2017, the number of
submitted to the Unicode GitHub projects related to bitcoin passed
Consortium to add a code point for 10,000. Bitcoin split into two derivative
the bitcoin symbol. digital currencies, the bitcoin (BTC) chain
with 1 MB blocksize limit and the Bitcoin
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Cash (BCH) chain with 8 MB blocksize limit.
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EVOLUTION
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The Evolution of Various Cryptocurrencies
Bitcoin 2009 27
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Bytecoin and Peercoin 2012
Ethereum Classic,
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2017 Bitcoin Cash, BitConnect, EOS.IO
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Bitcoin Cash (BCH)
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created in 2009. It follows the Bitcoin community in
Ethereum (ETH) Litecoin (LTC)
ideas set out in a white paper regards to the Bitcoin
by the mysterious Satoshi scalability issue. The
Ethereum is a decentralized Launched in the year 2011,
Nakamoto, whose true Bitcoin Cash proposes
software platform that enables Litecoin is an alternative
identity has yet to be verified. incorporates the simple
SmartContracts and Distributed cryptocurrency based on the
Bitcoin offers the promise of solution. While the block
Applications (ĐApps) to be built model of Bitcoin. Litecoin was
lower transaction fees than size limit of Bitcoin stands
and run without any downtime, created by an MIT graduate
traditional online payment at one megabyte, Bitcoin
fraud, control or interference and former Google engineer
mechanisms and is operated Cash has pushed the limit
from a third party. The platform named Charlie Lee. Litecoin is
by a decentralized authority, to 8 megabytes. This
is also the basis for its own based on an open source
unlike government-issued allows for a greater
virtual currency, Ether. global payment network that
currencies. There are no number of transactions
Ethereum is not just a platform is not controlled by any central
physical bitcoins, only processing per day.
but also a programming authority. Litecoin differs from
balances kept on a public
language (Turing complete) Bitcoins in aspects like faster
ledger in the cloud, that –
running on a blockchain, block generation rate and use
along with all Bitcoin
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helping developers to build and of script as a proof of work
transactions – is verified by a
publish distributed applications. scheme.
massive amount of
computing power.
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APPLICATION 30
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Applications of Blockchain
Transportation
transported and define a secure, stakeholders to can facilitate all trail of tens of millions
Supply Chain
Government
sold to consumers efficient and launch the first trade that passes of shipping containers
Healthcare
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across China by scalable exchange commercial use through its port, across the world by
Financial
harnessing the of health data of blockchain totaling $344 digitizing the supply
power of using blockchain. technology for billion, shift all chain process from
blockchain the private equity transactions to end to end.
technology. market. blockchain by 2020.
Many business use cases can be improved and/or solved by using distributed
ledger technology. It can be used in many cases where trust services are
needed by business applications. This can be utilized by using blockchain
technology as an application platform to build the underlying trust
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infrastructure of the system.
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The Cryptocurrency Financial Market
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Section 4
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Prices of Leading Cryptocurrencies Price of Bitcoin
$7,013.97
Price of Bitcoin Cash Per BTC
$538.27
There are over 1700 Per BCH
Price of Ethereum
cryptocurrencies,
however, the market $279.18
st
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is very top heavy, Price of Litecoin Per ETH 1
the top 20 $60.79
cryptocurrencies Per LTC
account for 89% of 2nd
the total market. 4th 3rd
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Market Cap of Leading Cryptocurrencies
Litecoin
$4.5 Billion
Bitcoin Cash
$12.3 Billion
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Ethereum
$45 Billion
Bitcoin
$102 Billion
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Comparison to Major Companies
Cumulative 35
Cryptocurrency
Market Cap
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Cryptocurrency in the United States
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Section 5
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California
Bitcoin Friendly States Bitcoin was officially recognized as legal tender in June
2014 when Governor Jerry Brown signed Assembly Bill
129. San Francisco is considered the world's most
bitcoin-friendly city with 177 merchants that accept it
for payment as of April 2015.
Colorado
Denver lists 56 merchants that accept bitcoin payments.
Bitcoin is also being examined as a potential solution to
legal marijuana dispensaries that have to deal in cash
and cannot access traditional banking.
New York
New York City has 149 vendors that accept bitcoin
payments, which is second only to Los Angeles and five
bitcoin ATMs. Many of the best funded cryptocurrency
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companies are based here, including: Coinbase, Circle,
21 Inc. and Bitreserve.
New Hampshire
There are no limitations on making purchases in
bitcoin, and the state reportedly has the most per
capital bitcoin purchases in the United States.
Texas
Under regulations published by the state's Department
of Banking in April 2014, digital currencies such as
bitcoin are not considered money. This means wire
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transfers and purchases or sales are not subject to the
regulations that govern equivalent transactions in
dollars. Two of the top 10 cities in the United States for
vendor acceptance are in Texas.
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International Adoption and Regulation
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Section 6
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Have You Ever Heard of “Cryptocurrency” Survey
Yes or No Responses
European Average 66 34
Belgium 38 62
France 50
Netherlands 55
United Kingdom 61 39
Spain 67
Italy 70
Germany 71
Poland 77
Austria 79
USA 57
Australia 70
0 10 20 30 40 50 60 70 80 90 100
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Yes No
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Australia
Cryptocurrency Usage
About
7%
of Australians have purchased cryptocurrency. 40
The share of people owning cryptocurrency in Europe is still
relatively low – 9% said they had purchased bitcoin or any other
crypto, with the data for Australia (7%) and the US (8%) showing
similar results. Luxembourg (4%) and Belgium (5%) are at the
bottom of the table, while Eastern European countries, like
Poland (11%) and Romania (12%), are among the leaders in the
survey. Turkey, with its staggering 18%, tops the chart
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European Market
Sweden
Many countries may be
moving to regulate and
Iceland Finland
Russia
restrict cryptocurrency
use, but European Norway
Estonia
financial actors are also
leading the research Latvia
Bulgaria
Kosova
Montenegro
Italy Macedonia
Turkey
Portugal Albania
Spain
Greece
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Latvia
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Germany
Lithuania
European Institutional Exchange
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Bulgaria
Kosova
Montenegro
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Netherlands
Belgium
Germany
France Cze
Cryptocurrency Taxation
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Spain
Early Regulatory Phase
Currently, there is no regulatory
framework for cryptocurrencies in
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India
Cryptocurrency Crackdown
Cryptocurrency is currently legal in India, but in
July the Reserve Bank of India (RBI) banned the
country’s banks from servicing businesses involved
in exchanging or processing digital assets. At the
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time, RBI cited risks to financial stability and the
security of investors as being the main reasons
behind the ban.
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African Cryptocurrency Usage
Rwanda
The National Bank of Rwanda published a
document earlier this year detailing the
bank’s position on cryptocurrency and the
potential risks associated with the new
cryptocurrency market in regard to Ethiopia
established financial institutions. The bank The Ethiopian Ministry of Science and
concluded that its preparations for Technology signed an agreement with the
mainstream adoption of cryptocurrency cryptocurrency startup Cardano earlier this
include creating and regulating a bank- month. The memorandum of understanding
owned currency. signed by the two parties intends to guide
blockchain development and training for the
country’s agritech industry. 46
Rwanda
The National Bank of Rwanda published a
document earlier this year detailing the
bank’s position on cryptocurrency and the
potential risks associated with the new
cryptocurrency market in regard to
established financial institutions. The bank
concluded that its preparations for
South Africa
mainstream adoption of cryptocurrency Blockchain and cryptocurrencies are popular in
include creating and regulating a bank- South Africa, where financial institutions are
owned currency. taking notably progressive steps toward
involvement in the industry. The Blockchain
Africa Conference has convened every year
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since 2015 in Johannesburg, and partners with
IBM and Microsoft, which have been the
biggest contributors to Africa’s technological
development over the past century.
Venezuela
In hyperinflation-crippled Venezuela, privacy-
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focused cryptocurrency Dash is rising in
popularity among locals with some 200
merchants signups and thousands of wallet
South America
downloads per month. A recent survey
conducted by blockchain and cryptocurrency
startup Ripio found that Latin Americans are
Brazil
confident that blockchain technology “will Brazil’s largest investment bank, XP
build a more reliable and participatory Investimentos, is setting up an OTC
system” and “change the rules.” Nicaragua
cryptocurrency trading desk, according to a
Costa Rica recent report by Portal do Bitcoin. With over
500,000 clients and $35 billion under
Guyana
Venezuela
Suriname
Panama
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peso, the restrictions on foreign currency
exchange within the country, and the 32
percent yearly inflation rate.
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w. www.cryptocurrencyalliance.org
p. 703-258-9399
e. info@cryptocurrencyalliance.org
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© Copyright 2018. All Rights Reserved. Paid for by the Cryptocurrency Alliance Super PAC. Not Authorized by any Candidate or
Candidate's Committee.