bitcoin - what, why and how africa is taking advantage

Bitcoin The what, why and how Africa is taking advantage

By Ronell Swartbooi

12 June 2015

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Quotes - Bitcoin Africa speakers

“What I would describe as the core innovation in Bitcoin, is the ability to have an autonomous economic system that is outside of the current financial industry” – Jonathan Levin, Coinemetrics.

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https://twitter.com/jony_levin


In my experience there are people who only earn and spend in Bitcoin via Gyft - Vinny Lingham, Gyft founder

FACT: There are people earning and paying for basic things with Bitcoin

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WHAT?

A payment system invented by Satoshi Nakamoto who published the invention in 2008 and released it as open-source software in 2009.

The system is peer-to-peer; users can transact directly without needing an intermediary.

Video -

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WHAT?

Bitcoin is often called the first cryptocurrency, although prior systems existed.

A cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.

Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. List of cryptocurrencies

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http://en.wikipedia.org/wiki/Medium_of_exchange

http://en.wikipedia.org/wiki/Cryptography

http://en.wikipedia.org/wiki/Cryptography

http://en.wikipedia.org/wiki/List_of_cryptocurrencies


“I do believe that Bitcoin has real benefit to offer in the B2B space and a way of transferring value, I also think that it has a lot to offer consumers. It will reach the edge of the network and do meaningful things there IF we design it competently to do that.” - Simon Dingle, BitX

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The nerds are excited ! Simon sympathises with those that don’t understand why they should be excited - because of Bitcoin’s complexity.

As a designer - he sees Bitcoin as having a design challenge - Bitcoin = elegant tech but a crap body and experience of using it varies

State of Bitcoin Q1 2015 - Coindesk report

• Largest quarter for Bitcoin investment $226 million dollars of project $676 million

• Improved regulatory content - building confidence, have not seen actual framework yet

• Fintech investment projected 3 billion - third of that Bitcoin companies

• Sub Saharan Africa most fertile market for Bitcoin, but regulation key

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Simon Dingle...Bitcoin needs a design solution

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Simon Dingle...look at Bitcoin as a product

Two theories useful for evaluating new tech

• The future of innovations theory - Looks at product lifecycle and how the product moves through the markets

– Innovators > early adopters > early majority (mainstream adoption - Justin Bieber > late majority/ less exciting > Laggards (your mom listening to Justin Bieber)

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Simon Dingle...where it is now...

Bithub will be the physical space where coders, designers and developers can meet, work out and collaborate - CEO of CiTi, Ian Merrington

“Digital currency is the future of economic development and innovation, in this country”

Bitcoin Foundation - Andrew van der Nest from Landmark Computers

Landmark = first company in South Africa that accepted Bitcoin as a payment method, both online and in store.

• Trading the largest volumes in Bitcoin currently in SA

• Advocate of Bitcoin as early as 2009

• In the process of setting up the Bitcoin Foundation in order to train and standardise the industry.

In his experience:

• No issues of Bitcoin vs traditional payments

• For companies accepting it as a payment system - It eliminates issues of “cheques bouncing” and payments being reversed

• The social development of Bitcoin places ownership in hands of consumer

• Hackers tried and they failed, two of the best hackers in the world

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Cool kid on the block or laughing stock at the braai?

Just another way to transact....

The PayFast use case: first platform in SA to offer Bitcoin as a payment option for merchants

Merchants are not exposed to volatility of Bitcoin, they only see rands = no risk to them • 30 000 merchants have enabled Bitcoin• In April, 127 merchants had at least one active

transaction• 16 000 Adword impressions• Mostly tech related companies receiving Bitcoin

transactions• Uptake in lifestyle and consumer goods like coffee shops

and beer houses• Not much growth since initial launch• Volume of transactions are not that high but value

is quite high - it's higher than alternative payments • Average transaction value is R4000-18000. Minimum R380• Example of gentleman in Eastern Cape

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Why is Bitcoin better? • Internet of value• Free movement of value - Exciting that it can be

programmed and built into systems • Eg. Health insurer can get heart rate and pay

reward immediately • Digital asset that cannot be copied, not locked in

to a specific service, • Border less payments• Faster, cheaper and more secure than traditional

payments

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Internet money made safe and easy...

What's holding Bitcoin back?

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ComplexityVolatility, but as volumes increase it becomes more stable

Regulation - It’s a fundamentally different payment mechanism and does not fit into current traditional regulation. Some governments banned it while others were more positive

Why BitX exists: The need to demystify and bring promise of Bitcoin to ordinary people

• Universal money for the Internet and they make it safe and easy to use

• They are a Bitcoin service provider, they interface between banks and regulators and customers

• Developed a simple user interface - with the Smart wallet you can buy and sell securely with two factor authentication

bitcoin - what, why and how africa is taking advantage

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