Inside Bitcoin Vegas Slide from GoCoin Founder Steve Beauregard
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GoCoin.com international digital currency payments platform founder and CEO Steve Beauregard delivered speech "Risky Bit'ness" at Inside Bitcoins Las Vegas Dec 11, 2013.
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Inside Bitcoin Vegas Slide from GoCoin Founder Steve Beauregard
- 1. RISKY BIT’NESS? Steve Beauregard, Founder & CEO
- 3. TRUST EXISTS WITH TRANSPARENCY “DIGITAL CURRENCY WILL DO FOR FINANCIAL TRANSACTIONS WHAT EMAIL DID FOR COMMUNICATION” Steve Beauregard, Founder & CEO
- 4. WE’RE NOT IN A FEAR ECONOMY IN A CENTRALIZED CURRENCY SYSTEM, CAPITAL CONTROLS ARE “BLACK MARKET” DRIVERS Steve Beauregard, Founder & CEO
- 5. ALT CURRENCY ADOPTION DRIVERS • UNSTABLE FIAT $$ • INFLATION • HYPER-INFLATION • REMITTANCE LINES • FRICTION • HIGH MOBILE PENETRATION • HIGH TRANSACTION FEES Steve Beauregard, Founder & CEO
- 6. FIAT AND REAL CURRENCY CENTRALIZED DIGITAL CURRENCY DECENTRALIZED DIGITAL CURRENCY MintChip Bitcoin Amazon Coins Litecoin PPCoin Namecoin (e-Gold) Terracoin Feathercoin Steve Beauregard, Founder & CEO
- 7. THE EAGLE HAS LANDED EMERGING & GROWTH-LEADING ECONOMIES (EAGLES) THE ADVANTAGE OF A COMMON CURRENCY IS EMERGING Steve Beauregard, Founder & CEO
- 8. 2013 EAGLE’S GDP GROWTH EXCEED G6 Developed Markets Emerging Markets Growth Markets Steve Beauregard, Founder & CEO SOURCE: GOLDMAN SACHS
- 9. WE’RE IN A COMMODITY SUPER CYCLE GLOBAL GDP GROWTH 3.5% EMERGING ASIA’S SHARE OF GLOBAL GDP UP 3% 2013 23% 1980-2000 2000-2030 SOURCE: STANDARD CHARTERED Steve Beauregard, Founder & CEO 2030 39% BY 2030 CHINA’S SHARE OF GLOBAL GDP WILL = 24%
- 10. MONEY’S FUTURE LIES IN IT’S PAST Steve Beauregard, Founder & CEO
- 11. THE GIFT ECONOMY ACTUAL MONEY IS NOT NEEDED TO RUN COMPLEX ECONOMIES Steve Beauregard, Founder & CEO
- 12. THE COMMODITY ECONOMY COMMODITIES ALONE ARE NOT ENOUGH TO SUSTAIN FLOURISHING ECONOMIES Steve Beauregard, Founder & CEO
- 13. THE COIN ECONOMY PERCEPTION, FEAR AND INFLATION ARE LINKED Steve Beauregard, Founder & CEO
- 14. THE GOLD ECONOMY VALUE IS BASED ON SCARCITY, DIVISIBILITY AND THE CONSENSUS OF THOSE WHO HAVE IT TO HAVE UTILITY Steve Beauregard, Founder & CEO
- 15. CURRENCY WARS COUNTRIES COMPETE TO DEVALUE THEIR OWN CURRENCIES IN ORDER TO MAKE EXPORTS CHEAPER Steve Beauregard, Founder & CEO
- 16. THE CREDIT ECONOMY THE LARGEST THREAT TO THE STATUS-QUO IS MOBILE…AND THEY ARE FIGHTING BACK! Steve Beauregard, Founder & CEO
- 17. THE TOKEN ECONOMY Steve Beauregard, Founder & CEO
- 18. THE SMART ECONOMY AS PHONE CAPABILITIES INCREASE, INTEREST IN ADVANCED FEATURES, SUCH AS MOBILE BANKING & MOBILE WALLET SERVICES WILL GROW. Steve Beauregard, Founder & CEO
- 19. CONSUMER PROTECTION ACCOUNT FOR THE INTERESTS AND NEEDS OF CONSUMERS, PARTICULARLY IN DEVELOPING COUNTRIES Steve Beauregard, Founder & CEO
- 20. THE REPUTATION DRIVEN MARKETPLACE MERCHANT REVIEWS KEY IN DECISION PROCESS WHICH MERCHANT WILL YOU BUY FROM? Steve Beauregard, Founder & CEO
- 21. MICRO-SPENDING IS COLLECTIVELY BIG THE CROWD IS DRIVING THIS MOVEMENT…THIS IS A REVOLUTION! Steve Beauregard, Founder & CEO
- 22. BITCOIN DISTRIBUTION BY AGE 32.7 YRS IS THE AVERAGE AGE OF A BITCOIN USER 45% of 24-34 year olds (in the USA) would feel comfortable using an independently issued currency. Steve Beauregard, Founder & CEO
- 23. WHAT’D YOU BUY WITH BITCOIN? GIFTS/DONATIONS OTHER LEGAL GOODS COMPUTER SERVICES SOFTWARE/HOSTING GAMBLING SERVICES COMPUTER HARDWARE NARCOTICS OTHER NON-LEGAL GOODS Steve Beauregard, Founder & CEO SOURCE: ZERO HEDGE
- 24. BRANDS RELY ON REPUTATION PEOPLE RELY ON TRANSPARENCY AND EXPECT BRANDS TO BE FULLY ACCOUNTABILE. Steve Beauregard, Founder & CEO
- 25. WHY ARE MAJOR BRANDS WAITING? • • • • • REPUTATION RISK VOLATILITY RISK SECURITY RISK LACK OF KNOWLEDGE REGULATORY QUESTIONS WHAT SHOULD THEY FEAR? Steve Beauregard, Founder & CEO
- 26. WE’RE IN A TRUST ECONOMY THE ONLY FEAR MERCHANTS SHOULD HAVE IS F.O.M.O. “FEAR OF MISSING OUT” F.O.M.O. FUELS ADOPTION Steve Beauregard, Founder & CEO
- 27. THANK YOU STEVE BEAUREGARD STEVE@GOCOIN.COM @GOCOIN LINKEDIN/IN/SBEAU SINGAPORE & SANTA MONICA, CA Steve Beauregard, Founder & CEO
Editor's Notes
- Consider today is..WHAT ROLE DC play future global payment sysCommon currency - down barriers – Global shared economy – Euro – unifying effectThese questions are so important, Here we r 20 yrs internet a Connected Global Marketplace And in most of the world this is the state of the art
- I took this picture the other day at a local sushi restaurantBroken, country-by-country payment systemsPayment standards is an oxymoronHuge drag on the global economy. Could be saving 100s Billon $$/yr w/ a common global currency …if payments industry is not ripe for disruption…I don’t know what is?
- Bitcoinis doing for financial transaction what email interpersonal communicationNOT POSSIBLE w/o Trust DEMAND Transparency.Consumer Reports & Gartner…don’t get me started!Uber example / AirBnB examplesBLIND leap of faith 2 send payment 2 anonymous public addressif you didn’t have some level of TRUST – how wld you agree to thisWhat is working against this economy of trust?
- FEAR BIGHurdle..DC UNREGULATED..EVERYONE knows Bitcoin 4Selling drugs - Human trafficking - Child prn$$ LAUNDERINGPost 9/11 clamped downDec’12 Standard Charted $133M in fines money laundering violationsSame month HSBC part of a $1.9B setlmnt bulk-cash transfers Why do these things take place? Has to do with MonetaryAuth sets fixed Xchag rate NO active buy&sell 2 maintain the ratesBUT I WANT TO STEER AWAY FROM THAT DISCUSSIONPerceptions that DCs drive DarknetMKTplace proving wrong. In fact, Social networks REAL ID reduces perceived risk Results in increased sense of public accountability
- Zimbabwe, hyper-inflation drove the USD defacto currency …illegal1 in 3 Kenyans have a Bitcoin high utility diff motivator Western Union line 20 DEEP…ripe for disruptionUNBANKED never participate online commerceUTILITY
- Real Fiat USD 56% of worldwide transxn & 66% foreign reserve currencyEuro 25% - many believe Euro 2 replace USD as a reserve currency, REMEMBER this point China taking steps to enable its’ RMB to become a global reserve currencyDecentralized - Gov’t stim. Econ by taxing people who “hold” the money MintChip direct pay w/ Phones & computersAmazon Coins purchase apps, games and in-app items on Kindle Fire. e-Gold 1stsucc DC, like BTC divisible limited supply FinCEN change rulesDecentralized DC - Pose risk to banks – lose license – Unregulated – all downside
- Next 10 years CONTRIBUTE LARGER THAN AveG6 economies REMEMBER slides back: UNBANKED Generation skipSince 90’s, EAGLEs exper’d higher growth than developed countries. TREND will continue over next dacadeWorld trade could quadruple in value to $75 trillion over this period, New bilateral trade agreements,globalization due to EAGLES
- Economies w/ growth over 4% Now account for 37% of world GDPUp from 20% from where they were in the 80’s In ‘13, the GDP of emerging markets will exceed advanced markets for the first timeMeasured in Purchasing Power Parity termsto USD 44.1 trillion versus USD 42.7 trillionONE INTERESTING number…emerging markets will create $1.6 trillion MORE in goods and services than advanced markets.
- Standard Chartered “Super Cycle” report 3rd economic super-cycle. Decades-long price movements in a wide range of commoditiesSuper-cycles are demand-driven because they follow world GDPTheory- rapid shock to demand starts the cycle – assoc w/ major Tech innovation i.e. industrial rev. or perhaps DC rev.CHINA 24% of Global GDP by 2030REMEMBER this point when I discuss currency wars later
- When we consider the FUTURE OF $ - IMPORTANT look @ pastImportant lessons and drivers we can draw from in understanding what may happen w/ DCShare PNG story Highlands - shell moneyLAY GROUNDWORK FOR NEXT 10 SLIDES
- The GIFT ECONOMY teaches MONEY NOT NEEDED Most of human history few differences of wealth, power or social status separated individuals from one another. Hunter-gather communities lived mobile lives, Gift economies – developed bonds of obligation and bonds of trust Heavily relied on personal relationships. Solomon Islands story…sharing what they get works for them…MODEL DOESN’T SCALESHARED any possessions – Light weight, ornaments & weaponsDid NOT accum. material goods simply too much to move
- AGGIE Comm emerged about 10,000 years ago, rules changeConcept of personal “ownership” Bartering = lifeblood of civTeaches something of value to the masses can be traded, Two new lessons: Without new goods & no tax NO GROWTHIf comfortable living in huts…great…but they can’t this ….
- Cowrie shells impossible to counterfeit, weapon utilityGov’t SOLUTION 600 BC coins with seals to guarantee Coins prone to conterfeit First Ming Dynasty “To counterfeit is death”History teaches us that gov’t depend FEARThus lesson #3 is “Perception, fear and inflation are all linked.”
- Gold SLOW STEADY ADOPTIONYou would EXPECT RADPID adoption…Columbus’ DISCOVERY 16th Century MASSIVE Gold mining by SPANISHMassive WEALTH and Hyper-inflation Too a couple of wars to fix the economyLESSON: SCARCE DIVISIBLE "Bitcoin's GOLD 2.0 guaranteed by electrically and math
- Throughout history, wars have been fought for a number of reasons, not the least of which is ECONOMIC GAIN. 1600s shift from paper-money countries realized value currency in tradeArtificially drive up other currency and down own Other COUNTRY GOODS TOO $$US Reserve currency since WWII, IS Bitcoin a tool War chest?
- Credit Cards HAVE Monopoly on POSDecline of paper $ - IS BTC biggest treat to CC proc fees?NOT Bitcoin …but MOBILE PAYMENTSBut I see a bright future for Bitcoin adaption at the Point of Sale. CC PRESSURE LEGISLATORS to adopt punitive NEW RULES w/regulatory hurdles fPayPal FEES for moving money to digital wallets funded through credit cards Western Union same 9/18 statement “Western Union does NOT have commercial relationships with Digital Currency companies or providers who buy, sell or trade in digital currencies and will also prohibit consumers from using Western Union Services if it is determined transactions are associated with E-Currency.”
- DC part broader group VIRTUAL $ CC Points, FF Miles, LOYALTYComing from Mobile App & eComm tokens, chips, stars, stickersFirst Meta EXCHANGE buy or swap …mature marketChina 2002 Q-coins, a VC 4 Play games and buy online trade $1B/yrSame familiar argument“VC converted into real money can only be allowed to trade in virtual goods and services rather than real goods and services. “If not for currency war with US like BTC same under Ministry of CommerceThe lesson the token economy has taught us is that for digital currencies to succeed, they have to be trustworthy and that necessarily implies the recognition of governments and financial institutions.
- Half Ready Mobile purchases - Driver Convenience Mobile banking / mobile wallet demand feed one anotherWallet app Uganda and Tanzania fuel interest bankingREMEMBER we talked about the UNBANKEDnear-field communications or touching phones to sensors, will gain traction“Point Know Buy” is an emerging consumer trendBitcoin provides the much need RAILS
- Set laws and orgs ensure rights of consumers Fair trade compFalse advert. Reliable info in MKTplaceUnfair practices gaining an advantage over competitors. Corner mktUncert.Scope Consumrprotection resp& assoc LIABFTC recomm if accept BTC should take resp. consumers’ personal data privateTech evolves FAST - colored coins,enhancdauth, Escrow / cold storSome consumer protect laws Challenge for BTCEU citizens have the right to obtain copies of records held about them by companies FRANKLY 3 heist in last week BIPS Still a delicate eco-system and we are the spoke-people…We have a responsibility to insist on reasonable protections so these things don’t happenHow can we protect the consumer without regulation?
- Started Discussion about TRUST…which driven by REPUTATONRecent Years eBay & Amazon and indie Yelp! Ratings.I use this all of the time, before placing an online order.My confidence stems from eBay and Amazon GOT My BACKCC otherwise chargebacks.What protects the consumer in the Bitcoin eco-system?
- Collective driving MOVEMENTA LOT of SMALL spendingVISA / MC putting penalties on those the take Bitcoin
- 45% of 25-34 year olds in theTechies, Gamers, iGamers, movie goes, shoppersUS would be comfortable using an independently issued, or branded, currency. (Contagious / Opinium)Sim other mktsSOURCE:http://www.zerohedge.com/news/2013-03-10/demographics-bitcoin
- These are the results of a bitcoin demographic survey published in March. These comes from ZeroHedge, a leading source for global finance, economics, market and political analysis. While the results certainly don’t capture the entire bitcoin economy, it’s worth noting that not all of the Bitcoin purchases fall within the “dark net.”Several new charities and other donation-based organizations have been created based on Bitcoin, and a number of charities are now accepting Bitcoin or have switched entirely in attempt to avoid government regulation of bank interference.For example, on April 15, 2013, tax day, Fr33 Aid announced it would drop its non-profit IRS applicationand instead deal only in bitcoins. Fr33 Aid converts all donations received via other payment methods into bitcoins. Before Fr33 Aid became a bitcoin-based charity, its PayPal account was locked down several times, Warmke said. When it received its first $1,000 donation, the charity was locked out of its account because it wasn't yet working as a 501c3 non-profit yet. It took two weeks for Fr33 Aid to get the funds back from PayPal, she said.Source:http://www.zerohedge.com/news/2013-03-10/demographics-bitcoin
- First thing to RELY on your REPUTATION2013 and Bitcoin inroads ecommerce, New ways to useAlmost SCIFI or out of a Bond movie trading phone-to-phoneBrands rely on reputation and that is a risk…WHY????
- REMEMBER THIS GUY???
- Why FOMO fuels adoption, and how to protect the people (intro to consumer protection)Image:http://www.flickr.com/photos/__fito__/5532158051/sizes/l/
- THANK YOU