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