Why Bitcoin's Rate of Adoption is Only Going to Increase
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Transcript of Why Bitcoin's Rate of Adoption is Only Going to Increase
Bitcoin Exponential Growth
Roger Ver
Good Money
Why Bitcoin?
“For the first time in the history of the world, anyone can now send or receive any
amount of money with anyone else, anywhere, instantly, basically for free, and it is
impossible for anyone, including governments, to stop them. ”
How?
Open and decentralized networkOpen code and transparent protocolPublic record of all transactions
Blockchain
Protocol Client Network
Bitcoin in 5 minutes
1. Get a wallet
2. Buy bitcoins
3. Spend bitcoins
…nearly a million websites
Wallets
Be safe!
Bitcoin gives you unprecedented control over your money. That is a great responsibility.
-Keep your private keys safe-Make backups-Hold your bitcoins yourself!-Be careful who you trust with your bitcoins-Multi- Signature
Regulation
Regulation of exchanges, acceptance of protocol.Free speech and censorship.Currency, digital commodity, or prepaid instrument?
Growth: Users
Growth: Price
Growth: Transactions
Growth: Merchants
www.purse.io
2010 – Pizza
2011 – Hackers
Evolution
2012 – Consolidation
2013 – Limelight
Evolution
2014 – Ecommerce
2015 - Wall Street?
Evolution
Valuing Bitcoin
Amazon
Revenue 2014: $88.9 billion
3% average transaction fee
Amazon pays $2.6 billion a year in transactions fees.
Amazon nets $1 billion per year. Amazon could double their profits by doing all transactions in Bitcoin. If the market cap for Bitcoin was $89 billion, each Bitcoin would be worth $6,300.
Valuing Bitcoin
Gambling
The online poker market is $4.8 billion a year industry.
Online gambling will follow poker and is a $30 billion a year industry If the market cap for bitcoin was $30 billion, each bitcoin would be worth $2,142.
Valuing Bitcoin
Remittances
International remittance is the transfer of money by a foreign worker to their home country. In 2014 global remittances were over $600 billion dollars.
Western Union fees for remittance can run from about 4 percent to 20 percent or more.
If the market cap for Bitcoin was $600 billion, each bitcoin would be worth $42,800.
Valuing Bitcoin
Amazon = $6,300Gambling = $2,140Remittances = $42,800
Bitcoin adoption world wide = ??????
Valuing Bitcoin
http://www.globalmacroinvestor.com/
Valuing Bitcoin
Present value
There are currently approximately 10 million Bitcoin users (doubling each year at current growth rate).
There are currently 14 million bitcoins in circulation.
If each user is on average willing to hold $500-$1000 worth of value in Bitcoin, the total market cap of Bitcoin would range from $5-10 billion.
With 14 million coins in circulation this would give us a present value of $357-714 per bitcoin, based exclusively on current market size.
Markets
Second Generation Exchanges
Transparency - External AuditsProof of reserves - No fractional reserveP2P Exchanges…distributed exchanges coming in 2015!
EcosystemSoftware Exchange
Mining Custodian
coinmarketcap.com
Cryptocurrencies
Startups
angel.co/bitcoin
VC Investment
ATMs
Bank integration
Mobile
Main Street
coinmap.org
7000+ physical locations
Remittances
rebittance.org
Philanthropy
Micropayments
Social Networks
ChangeTip allows 300Mn Twitter users and 1.4Bn Facebook users to instantly send and receive bitcoins.
Payment processors
Games
E-Sports
History
Financial Markets
2013 Bitcoin CFDs2014 Bitcoin Derivatives2015 Bitcoin ETFs2016 ??
Financial Markets 2.0P2P Currency P2P Payments P2P Lending (beta)
P2P Markets (beta)
P2P Funding (beta)
P2P Contracts 2015
P2P Law ?
Q&A
@rogerkver
www.rogerver.com