intro to bitcoin by google's group product manager

Intro to Bitcoin by Google’s Group Product Manager

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Tyler Odean

Tonight’s Speaker

The Basics of BitcoinTyler Odean

What is Bitcoin?(besides cool as s#&t)

Bitcoin is a digital currency.

Bitcoin is a trustless, permissionless digital currency.

Bitcoin is digital cash.

So how does Bitcoin work?(don’t say magic don’t say magic)

To be digital cash, one must guarantee two things:

● Only you can spend your money

● You can spend your money only once

The only you part is easy. Bitcoins are stored in 'wallets,' mathematical addresses based on a pair of numbers called keys.

● Anyone can send Bitcoin to a wallet using the public key.(kind of like an email address)

● Only you know the private key needed to spend from that address.(kind of like a password)

The only once part is much trickier. Banks prevent double spending of money by using ledgers.

So what makes sure bitcoins are spent only once?

Bitcoins don’t exist.

There is only the Blockchain.

The Blockchain is a shared public ledger listing every transaction in Bitcoin history (and by implication, every account balance).

Anyone can download the Blockchain. (which is why Bitcoin is trustless)

The Blockchain is secured and updated by a network of accountants known as Bitcoin miners.

Anyone can become a Bitcoin miner. (which is why Bitcoin is permissionless)

So how does the Blockchain stop an evil miner from rewriting history?

(and Chaotic Neutral miners, too)

Updating the Blockchain is pointlessly expensive!

… and then subsidized with Bitcoin.

● To be valid a block must contain a magic number called a ‘nonce’ that causes the hash of the block to have a certain number of leading zeroes.

● Miners race to guess that magic number, which is pointlessly expensive.

● Miners spend their computing power this way because the winner receives user’s transaction fees and the block subsidy, a set of newly minted Bitcoin.

● Miners are paid for their work in Bitcoin, so they are incentivized to mine honestly to protect their investment.

But is Bitcoin good money?

Bitcoin can’t be counterfeited.

Bitcoin can’t be seized.

Bitcoin can’t be censored.

Bitcoin can’t be inflated.

Bitcoin is more than money.

History is written by the winners.

History is written by the winners.History is written by the Blockchain.

Q & A[ no price predictions ]

How much BTC do you need to get to the moon?

Using wealth distributions from Japan (low), US (medium) and Zimbabwe (high) as reference, how much Bitcoin in today’s prices are needed to be in the Top X% for world Bitcoin ownership.

Low Medium High

Top 50% 0.0009 btc 0.0000 btc 0.0000 btc

Top 10% 0.0085 btc 0.0146 btc 0.0002 btc

Top 1% 0.0101 btc 0.0260 btc 0.1864 btcTop 0.1% 0.0102 btc 0.0270 btc 0.3065 btc

Low Medium High

Top 50% $6.56 $0.14 $0.00

Top 10% $62.13 $106.81 $1.74

Top 1% $73.98 $190.10 $1,363.97Top 0.1% $74.88 $197.90 $2,243.24

How much does a ticket to the moon cost today?

Using wealth distributions from Japan (low), US (medium) and Zimbabwe (high) as reference, how much Bitcoin in today’s USD prices are needed to be in the Top X% for world Bitcoin ownership.

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