Hi, I’m Marc Carignan, author of the best-selling book, The Bitcoin Tutor, and founder of TheBitcoinTutor.com. Bitcoin it’s nothing short of the next wave of Technology you see wave 1 was about bringing computers to the masses with pcs wave 2 of course was the internet which spawned e-commerce social media and mobile devices wave 3 is happening right now redefining the future of Finance and money and it’s based on Bitcoin and its underlying blockchain technology I found it the Bitcoin tutor to assist people to truly understand what this next wave is all about the company’s focused on helping people use this new technology safely successfully and profitably thanks for taking these early steps with us we’re ready so let’s go today I’ll be presenting Bitcoin in the blockchain 101 let’s get started let’s see what people are saying you can’t stop things like Bitcoin it will be everywhere and the world will have to readjust world governments will have to readjust that’s by John McAfee founder of McAfee Associates inventor of the famous McAfee Antivirus software Bitcoin will do two banks what email did to the postal industry that’s Rick Falkvinge founder of the sweetest pirate party and closer to home here in the u.s. virtual currencies may hold long term promise particularly if the innovations promote a faster more secure and more efficient payment system that’s Ben Bernanke chairman of the Federal Reserve who served till 2014 saying something quite positive and really a disruptive comment about what might happen here with Bitcoin in the blockchain before we get started let me tell you a little bit about myself I’m founder of the Bitcoin tutor and author of the book by the same title best-selling book the Bitcoin tutor unlocking the secrets of Bitcoin I’m also a Silicon Valley entrepreneur who’s served in software sales consulting training coaching and authoring roles my role really is to simplify technology concepts I’ve taken the role of evangelist and technology translator if you will for for public understanding and I also have a strong Bitcoin interest and have experience over the last couple of years like so many two or three years is a long time in the Bitcoin world so here’s the agenda for today it’s broken into three parts first of all I’m going to start with what is money and this is really important because it forms a basis for understanding Bitcoin and the importance of it secondly we’ll go into what is Bitcoin the technology the network itself and then the currency and then finally we’ll close with what is the blockchain this is the public ledger and how it works to support the Bitcoin network so let’s start what is money so a lot of folks think if you open your wallet and see pieces of paper in there that’s money and for many people of course today it is but money was not always slips of paper money really started more in a bartering system where people would barter grains other food animals as you can imagine it got a little tricky if you wanted to trade goats and cows how many goats does it take to buy a cow and sort of hard to make change if you only want to sell half a cow seems silly today but borrowing was you know obviously key before currency and then as time went on here in different cultures including in China and Rome in the Ottoman Empire and you’ll see some examples of those coins and of course in ancient Greece there was a move toward using precious metals that represented value and and truly the precious metals were seen to have value furthermore there were coined to make them a more equal weight and make them more interchangeable so what are the characteristics of money well depending who you speak with these are seven of the characteristics that most people agree on the first is money must be a unit of account that is it must be measurable and it must be able to be accounted for you know we got to keep the accountants happy and allow them to measure what we’re spending it needs to be a medium of exchange that’s simpler than barter it’s we don’t want to be carrying cows around and when it’s something that’s easy to to to use it has to be portable the ideal limit there is it has to fit in your pocket if it doesn’t fit in your pocket it’s not that portable it also needs to be durable it needs to be something that does not wear out

very easily should also be divisible you need to be able to make change needs to be fungible that means one unit is like another one dollar bill is like another one gold coin is like another in purity in value and in denomination and finally it should be a store of value and really this means it has to hold its value over time two main parts of that are commodity value and scarcity and scarcity is a very important concept that’s being over overlooked today in the in the in the financial markets and I’ll talk more about that in a moment if it doesn’t meet all of these criteria then I will claim that it’s not money it’s simply a currency so we’ll take a look at our current system and Bitcoin and see what we think it is so today we have what’s called fiat currencies and this is important distinction previously money was something valuable it was gold coins or other other coins or items of value later io u–‘s became the first paper money and some claim that this had occurred first in China before it went into Europe the idea was that you would have some commodities on deposit basically and you would get a claim check and people would use the these claim checks these io u–‘s because it was easier to carry around then paper money issued by sovereign governments was commodity backed this means that there was a certain percentage often around 40% of the value of a currency that was backed by a commodity this would help stave off runaway money printing forward sample because you always had to have enough commodity to back it up today though currencies are fiat and fiat really just means by decree and usually this is by decree of the sovereign government that issues that currency great quote here from Ben Steele and Manuel Hines in their latest book only in the last 40 years of the last four thousand has humanity not consistently based its currency in metal specifically gold so this is telling us something and will look more at that and in fact there was a Fiat experiment right after war world war one in Germany and what’s often called the Weimar Republic because that’s where the the new constitutional government was was created got to the point where all of this was fiat not backed by anything and what happened is that people were moving on truckloads of Deutsche marks to try to buy things like bread and just basic foodstuffs between World War one and World War two and in my book I talk about this and even get to the point where there’s some historians that believe that this was part of the discontent that occurred in the German population that fed the Third Reich and the movement into World War two another more recent example is in Zimbabwe here in the in the 70s where they got to the point where there was such a runaway inflation they were printing trillions of dollars on a single note and in this case their largest bill the one hundred trillion dollar note and you can see the amount of paper that this child had to carry around just to buy food for the day in the US I call August 15 1971 the day that money died and this is the day that the u.s. left the backing of the US dollar against the gold reserve and became completely fiat on this day Richard Nixon is pictured because he made an announcement on television that day about the temporary change that was happening Switzerland was the last of the Western countries to to have a goal back reserve and they were compelled to release that in 2000 primarily because everyone else had and their currency was becoming so valuable that it was tough for them to do trade today people consider Fiats to be normal however I want to I want to warn you that Fiats have always failed there’s no example where Fiats have lasted more than about 40 years and right now this is driving huge interest in gold and Bitcoin by those who understand history ok so now we have our brief background on money so let’s take a look at Bitcoin now with that context so what is Bitcoin well Bitcoin often is spelled in two different ways often with a capital B which refers to the technology and the network of Bitcoin and then sometimes with the lowercase B that refers to the digital currency or sometimes referred to as a token now this is not used consistently but many times it is used in this way and and the important thing to take away here is that Bitcoin actually refers to all of these things so let’s took take a look at the network first now networks

typically come in three varieties they come in a centralized variety which is very much like the financial system today where there’s a single trusted player in each of the networks whether that’s a specific bank or a credit card network or some other trusted party or it comes in to a decentralized version where there are a set of redundancies but still a set of trusted parties or trusted nodes in this network and and then we have the distributed network there’s very few examples of that today but this is exactly what the Bitcoin network is it’s distributed that means every node has a control component and to do that of course each node needs to build trust in some way so the way the Bitcoin network works is that the the network ensures that transactions are valid with cryptography it ensures the accuracy of this distributed database by performing and solving cryptographic puzzles and the network itself is referred to as the blockchain or the database itself is the blockchain so let’s break that down first of all cryptography cryptography is simply a type of mathematics it’s a complex mathematics that creates something called encryption the idea of encryption that it’s difficult to go back to the original information so the decryption is difficult and for all intents and purposes it’s impossible by most people it actually facilitates private communications it’s used extensively in government and military and more and more in private communications now it has inherent value because cryptography itself creates this kind of trust and therefore it’s seen as mathematical value and this is important when we look at the value of currency or money now this is spawned a cryptographic currencies now being called crypto currencies or simply crypto s– these are digital or virtual currencies that utilize cryptography and they utilize them to guarantee the transactions and to also guarantee the ledger itself the the history of transactions the algorithms that manages govern their generation so the creation of new currency as well as verifying the secure transfer from one party to another and there is governance but it’s not by humans it is by mathematics so there is no politics that come into play when it comes to governing these currencies an important distinction also is that this is digital cash it is not digital credit or debit cards it is actually one-way transactions it is not like credit cards today where you’re giving an authorisation for someone to withdraw funds from your account you’re actually transferring funds and as such it’s seen as the first secure digital cash online so what is Bitcoin well bitcoin is the premier cryptocurrency and it also has a certain notation that we should be aware of so you’re all familiar probably with how dollars and euros and pounds are written with the currency symbol for each of those currencies to the right here are the currency symbols that are being adopted for Bitcoin the large B for Bitcoin itself and the small B for bits which we’ll get to in a moment about Bitcoin it has a lot more precision in currency most currencies today have two digits after the decimal point basically breaking everything down into 100 cents or 100 parts Bitcoin breaks everything down into 100 million parts or eight decimal places and you’ll see this allows a lot more flexibility in the in the actual currency notation and will allow it to maintain much more value and make it easy to to notate it the smallest unit of Bitcoin is known as Satoshi and for those know about the history of Bitcoin it was created by Satoshi Nakamoto which was a pseudonym we believe of the person or persons who created this new advancement in in currency so the smallest unit the one one hundredth millionth of a Bitcoin is called a Satoshi so there’s 100 million satoshis in one Bitcoin in the middle there there’s something that we call a mill a bit or simply a bit which is one thousandth of a Bitcoin we consider that this is going to be a common for more common denomination that will be used for Bitcoin for example right now if you have 12.3 for Bitcoin this would be twelve thousand three hundred and forty bits now this is important because the value of Bitcoin right now is makes it the most valuable currency in the world you see one

euro equates to about a dollar twelve US dollars one one pound sterling is about a dollar forty one in you a USD the most valuable fiat currency today is the Kuwaiti dinar and even that’s only three dollars and forty two cents but bitcoin is valued right now at about a 420 dollars now this makes it a little bit cumbersome to use because of all the decimal points required if you’re just buying something like a cup of coffee so the idea is bits make consumer use easier so bit’s again our one thousandth of the Bitcoin so one bit at this current rate would be worth 42 cents just a much more usable currency so if right now if a cup of coffee would cost you three dollars it’d cost you about six or seven bits now why is this important again a Bitcoin you know we’ve been able to do commerce online with credit cards and debit cards and we’ve seen over the last 20 years mail moved to email shopping malls be replaced more and more my online shopping medicine is being replaced by telemedicine especially in more rural neighborhoods and then banking is really being used more and more online and mobile well finally now we have cash that’s digital we have not really had yet usable cash until now with Bitcoin so what gives Bitcoin is value well when we looked at money we looked at the idea of commodity value here with Bitcoin first of all like any currency there needs to be a willingness of parties to accept it no government forces people to use Bitcoin yet tens of thousands of people certainly tens of thousands of business and hundreds of thousands of people use Bitcoin today there are also Bitcoin exchanges primarily online but also that occur in person and these are these regulate the prices simply by supply and demand by market forces what are people willing to buy and sell a Bitcoin for I also believe cryptographic security as we talked about a moment ago the mathematics of cryptography also give Bitcoin value you know we’d be naive to think that mathematics does not have value in our society and in fact the very first messages that went into space or encoded in mathematics as many scientists believe that that would that would be the International or the intergalactic language to be able to speak with other races finally there’s no central authority many people see this as valuable especially with all the currency manipulation happening in the world today there is no central bank or government or politics that come into play here and there’s no stimulus quantitative easing or other currency manipulation that the price this is purely supply and demand now of course supply and demand is also affected by news and people’s willingness to accept it or what people believe this this currency or this money is but again there’s no direct involvement by government so let’s take a look at our characteristics of money and see if we can agree whether or not bitcoins are money I think first of all with the eight decimal places for notation I think it’s indisputable that bitcoin is a unit of account in fact it’s much more precise than dollars euros or pounds it’s a medium of exchange of course it’s simpler than barter it’s simply a digital version of cash it is actually quite portable the record is held online so it’s really available anywhere you have online access but more importantly you can actually have a Bitcoin wallet which we’ll talk about in a moment on your smartphone so you can actually have the represent representation of it in your pocket on your phone it’s also durable as far as I know digital bits don’t wear out they can be backed up numerous times as well and they simply are ones and zeros that stay around it is divisible of course and again with much more precision because we can break it down all the way to a Satoshi it’s also fungible and this was actually one question that a lot of folks early on weren’t sure about well they weren’t sure if let’s say a Bitcoin was used in an illicit activity with that Bitcoin be since it can be derived or it can be traced back to its original use would it still have the same value thanks to the US Marshals office we now know that for sure they confiscated some bitcoins a couple of years ago from some illegal activities and then auction them off just like they would auction off any other thing of value and so the US government agency has basically confirmed that the fungibility of the Bitcoin that one Bitcoin is as valuable as another finally the store of value and I have a question mark here because we believe there is value and especially

in the scarcity of bitcoins and there is a limit to how many bitcoins will be created and whenever there’s a limit to something there’s a value the question that comes into play here is the the volatility of the price of Bitcoin has been quite extreme perhaps because of the small number of folks early on that we’re trading it and also the lack of clarity about its future there is more stability coming to Bitcoin over the last year so time will tell but I believe that this will show that it will hold its value over time but again the the the jury is still out on that so based on that I’ll ask you to think about is Bitcoin money or is it simply a currency at this point so let’s see what other governments are saying in Australia the Reserve Bank said that there’s no law against transacting other currencies and that included Bitcoin in Canada it’s regulated under the anti money laundering rules and they counter terrorist financing laws in China private parties can hold and trade bitcoins but banks may not in France and in many countries in Europe there’s no specific laws or regulations about Bitcoin in Germany specifically it’s considered a legally binding financial instrument and it falls into the category of private money now Russia sure you’ve probably heard about that has banned Bitcoin well the truth is there’s actually no specific bill that’s been passed there’s some administrative agencies that have been discouraging its use however that seems to be turning around and I think in 2016 we’ll see Russia come around and and look at how to embrace a Bitcoin in the blockchain in Singapore the monetary authorities stated that whether businesses accept bitcoins or not is is is their their decision so again it’s being seen as a decision that merchants and consumers get to make in the UK they’ve stated that bitcoin is currently unregulated meaning it can be used by the parties who want to use it what about the u.s. the US has had a bit of a confusing history here in the u.s. the courts in 2013 had a certain ruling in fact a magistrate judge in a test tricked exes u.s. district court class find it as a currency not long later the US Treasury classified Bitcoin as it conferred a convertible decentralized virtual currency which is a mouthful a bit later after that Court decision but it’s not as clean as that the IRS actually had a ruling at the end of March 2014 that was back dated to 2013 where the guidance they provided to people trading bitcoins is that it’s considered as property for federal taxation so the idea of what there was the basis price where you purchased it and what was the price where you sold it and obviously the taxation would be based on that gain or loss and most recently in September 2015 the CFTC in the US classified Bitcoin as a commodity so there has some property characteristics and some additional ones as well so expect this to continue to change in in in the way that governments deal with Bitcoin so let’s look at specific value so in January 2009 Bitcoin the the network itself started running so it had obviously no value at its inception by April 2013 at that first blip in the chart on the right you’ll see that the value of Bitcoin arose to 266 dollars quite an amazing increase in just a few years that was based on the Cyprus bail in and again for those of you who have been tracking what happened there in 2013 there was a failure of Cyprus banks and so the government made a decision to tap into shareholders or banking deposit holders cash and took up to 60% of each depositors cash to bail out the bank and that was called a bail in and that scared people about the the trust of the banking system and there was a lot of money that moved into Bitcoin by November 2013 the highest peak on that chart it hit the highest price so far in the history of Bitcoin over $1200 a US and then it dropped to $650 just a couple months later with the failure of one of the most popular Bitcoin exchanges Mount [ __ ] the reason for that failure has still not been publicly announced but many people believe it had a lot to do with failure of security of their own computer systems internally a recent low was a March 2015 when it went all the way down to 200 and the most recent prices of this presentation was 417 dollars with 15 million bitcoins in circulation and a market cap

of six and a half billion dollars so you can see it’s still a young currency but there’s a lot of momentum rebuilding now and you can see the arrow is definitely back and up to the right so that is Bitcoin so let’s take a look now at the third and final component which is blockchain and to understand that we still have to talk a little bit more about Bitcoin so where to bitcoins come from now if it’s a commodity you might imagine like gold it might come from true mining in the earth and in this case this this guys holding a piece of gold ore from the earth but for bitcoins it comes really from computers from mathematics and and from growing you know very large and growing data centers so to do that we have to do something called Bitcoin mining and that’s again to equate it that term is to equate it to the idea of commodity mining but the mining process actually has three main components one is to approve transactions and it transactions simply meaning when one person transmits bitcoins to another also it needs to add records to the public ledger which is the blockchain about those transactions and finally Bitcoin mining creates new bitcoins it creates new currency in the ecosystem the way that happens is through math or cryptographic puzzles so it’s it’s truly a game it’s a competition so what happens is that for each miner which is really a computer system each miner needs to solve a problem mathematical problem and the bitcoins are awarded to the winner and that game occurs every 10 minutes so there’s a new match that occurs every 10 minutes and it’s done that since its inception in January 2019 which means right now we’re up to about four hundred and four thousand blocks in this blockchain so how does how does this game work well there’s a certain goal which is called a hash of value and the solution gets run by running what’s called a hash function and that’s the mathematical or cryptographic puzzle and that game continues to run until the value that is desired occurs and the value is all based on the number of of leading zeros in the answer so it’s a simple game if once you get the number in this case we just got it now the right number of leading zeroes you have won the game now it seems like this could be somehow tricked but there are many ways that provide security and reasons why you can’t cheat and this includes this solution has to be has to incorporate the previous blocks hash value and must include a hash value based on all the transactions in the block it must be verifiable by anyone else running that that hash value it must supply what’s called a nonce and this is the key factor that changes and it’s a 32-bit random number and once that number gets added and included into this puzzle once we find the right nonce which is really the game here if you fight find the right nonce that so provides the right solution then you broadcast it as the first person who’s solved the puzzle and once everybody else verifies it then you win you win the game a new block gets created to the blockchain and you are awarded bitcoins so again miners aren’t actually mining or there are actually Network computers running Bitcoin software they are today high-end computers when Bitcoin first started you could run it on your PC but that’s not possible anymore because of the power required they’re run using special app location-specific integrated circuits they’re often liquid-cooled and they operate in the trillions of hashes per second that means they can run this game over a trillion times every second also computers these miners are running in mining pools it’s very difficult when there’s tens of thousands of players and there’s only one winner for you to win very often so they work in pools and the idea is it’s better to put your processing power together and it’s better to win little fractions of the Bitcoin more frequently than big rewards infrequently so the leverages leverages efforts of the mining and the rewards are shared by the way the rewards that were put into place by Satoshi Nakamoto to encourage mining because as there’s more more miners or more Bitcoin miners joining the network then our network becomes more stable powerful and secure especially parts of it drop out because of lack of the internet lack of power whatever might happen because it’s distributed the network continues now there’s a side effect that happens

from adding more power is that math puzzles get solved faster and often they get solved too fast remember the network is trying to regulate itself so that a new block and a new game runs every ten minutes but as more and more powerful computers come and compete these blocks get created in nine minutes and eight and a half minutes and all of this it happens faster and faster so the Bitcoin network and the blockchain infrastructure below it is self-regulating so let’s take a look at an example here’s a 2-month example of what happens with this self-regulation the red line with the different tiers is called the difficulty and you can see that as the hash rate which is the speed at which these puzzles are solved goes up the the difficulty also goes up and in the Bitcoin network the blockchain itself it’s decides designed to readjust difficulty every two weeks approximately it’s actually every 2016 blocks and so when the hash rate goes up dramatically you can see that in this first here that the difficulty went up quite fast and then it went up again and then the difficulty was so high at one point that the hash rate dropped off and that it took you know over ten minutes to actually create blocks so the difficulty in that next two-week interval went down a little bit and then over time and adjust it back up so the network is self adjusting and this is part of the agreement that all Bitcoin miners have to subscribe to to actually be able to play this game well so how many bitcoins are there well right now there’s about fifteen million in circulation and the algorithm will top out at 21 million and the reward for playing this game halves every four years you see the Bighorn reward initially started at 50 bitcoins and right now at $400 a Bitcoin that’s a quite a nice prize every ten minutes but the network is also designed assuming that the value of Bitcoin would increase and so that the reward could decrease as the total number of bitcoins and gets some mind so in 2013 the current value also is 25 bitcoins so right now every 10 minutes 25 new bitcoins get awarded and during the course of this presentation this award happened three or four times as of July 2016 the Bitcoin reward is expected to have again and this time we’ll go to twelve and a half bitcoins the final bitcoins are expected to be mined around twenty one forty so let’s dig in even more on the blockchain so the blockchain itself is the distributed ledger it’s the chain of blocks that occur every time that get created every ten minutes there are cryptographic algorithm or puzzles that get solved to secure that all transactions are recorded and they’re encoded into irreversibly and the reason that’s important is because in a distributed network you want to make sure that no single player goes out and a change such as adding a zero if you will to the number of bitcoins that were transferred you know changing it from ten to a hundred that’s really impossible given the cryptographic hash algorithms to get used and the fact that the blocks are truly chained as I mentioned briefly when you solve the puzzle one of the inputs to that puzzle is the hash or the result of running the previous block through that algorithm so what that does is indelibly linked the blocks so if you wanted to change the block let’s say ten blocks ago which is really just a couple of hours ago you would then also have to regenerate every block after it and you would have to get 51% of all miners in the network to also agree to make that change which is also a risk because anyone who’s worked won an award over the last ten blocks would lose their reward and they would have to fight for it again so the whole idea of this is that there are built-in incentives for the miners to actually do this properly as well as algorithms that enforce it another great feature of the blockchain is that it is transparent you can use a blockchain Explorer which is really an online program that’s free to use to look at any block in the history of the blockchain so really this encodes every transaction that’s ever occurred in Bitcoin since the what’s called the origin block also people have talked about you know Bitcoin being anonymous well cash is anonymous but Bitcoin is a bit more secure than that we call it pseudonymous because because of this transparent ledger this blockchain all transactions are recorded by public keys now although the owners names are

not listed if you know someone’s public key then you know whose bitcoins they are and of course as I mentioned anyone can view the contents but only the owners of the bitcoins can transfer them so what designates an owner well we have something called public private key pairs this is another form of cryptography that’s used by Bitcoin in the blockchain the first was solving the cryptographic puzzles that secure the ledger this is all about during the ownership of the bitcoins so public keys which are the public view of of the coins that you can navigate in the in the Explorer are derived from Papa from these private keys so the private keys designate the ownership and the public keys is basically the address where you can deposit bitcoins or send bitcoins to someone else this uses something called non reversible derivation non reversible derivation this is cryptographic algorithms that were created by the NSA and other groups to really confirm that there’s true ownership so the owner ownership is designated by controlling the private key the private keys are used to sign or authorize transaction in the cryptography public keys are used to verify those signatures by anyone so anyone can verify who owns bitcoins and then there’s a final component called a wallet address which just makes it easy to use and deposit bitcoins to send bitcoins to someone else let me give you a simple example to look at private and public keys the whole example of a safe deposit box in a bank is a good analogy the public key in this case would be held by the bank and they would have a set of those keys for the different boxes the private key would be your safe deposit key that only you have that is required to unlock that box the big difference here in on the blockchain is that all these safe deposit boxes have transparent doors so everyone can see what’s in everyone everyone else’s box you can see how many bitcoins are in each box so this is a good analogy to think about now it’s very important to secure the private keys just as you would secure cash because bitcoin is like cash there are two general ways to do that one you can you use a trusted third party or an exchange to secure them or secondly you can actually secure them yourself just as you would keep cash in a safe at home let’s look at the first one secured by a third party we recommend that you use what’s called two-factor authentic so just like you would go into your online bank account the first factor is your username and password the second factor though is a one-time generated password the advantage of this is if somehow your password gets out and someone finds what your password is or guesses it they can still not get into your account without this second factor sometimes just written as 2fa so the 2fa that is used by most that that is easiest to use by most folks is either on a smartphone where you get a one-time password generator app and there are several different makers of those that are usually free and you encode a seed into that provided by the third-party and then usually every 20 30 or 40 seconds a new one-time password gets generated the other way to do that is that you can have a second factor or another one-time password simply texted to you using SMS this is particularly useful if you don’t have a smartphone and you just want to text it to you so this creates a much greater security with the third party if you’re going to secure your private keys with a third party the safest way to do it here is with mr. snow miser here you want to freeze it you want to put it in deep freeze we call that cold storage and that simply means you secure the keys offline you hold them yourself three common ways is with a disconnected computer a PC or Mac that never goes online you could also put it on a special USB stick memory stick that’s only used for your Bitcoin keys and then finally a common area a common way of doing it is paper wallets let me show you an example of a paper wallet a paper wallet is simply a sheet of paper is slip of paper that has two addresses on it one is your Bitcoin address which is the deposit the public address that you would provide to someone to give you bitcoins and that’s on the left with a corresponding QR code and the QR code simply makes it easier to scan that in with your phone so you don’t have to type in that string of numbers and letters because that can that can become tedious and error-prone on the right is the private key

and this is your secret key this is the key you need to protect from others and you can see that key is written underneath it as well and in this case you could print it out and put it in your safe and you actually can delete the private key from your online source and now the only way to recover that bitcoin is with a scan of that private key it’s very very safe well there are some enterprising entrepreneurs that have taken that to another level and and come up with these pre-printed notes you know that look like you know look like sovereign notes here in this case it’s a little more fun we have dr. evil on the left and Kermit the Frog on the right and and you can purchase these online and the areas with the in the white squares with the QR codes are left a blank and then you simply put them in your printer and print your specific codes with the software that’s provided here’s another example where you can actually have a fold over region so that your private key can then be folded over and taped shut so that no one accidentally glimpses on that code in closing here let’s look at a few possible blockchain uses we’ve talked primarily about money and value and that is really the primary use case of Bitcoin and other cryptocurrencies but it can also be used for other items of value other forms of value the common area that’s being looked at right now or a hot area I should call it is smart contracts some of the character Xterra turistic sand capabilities of Bitcoin have not had a chance to go into in this 101 presentation but it’s actually been designed so they could have very complex and multi signature capabilities for example you can say something like two out of three private keys need to be used to designate and control the Bitcoin so this is useful in a company for example where you might say two out of three officers need to agree to pay a certain bill a lot of folks are you looking at it as a decentralized database management option is a big data as an option to some of the other technologies that are out there today it’s possible also that tokens using something called colored coins or sidechains again other concepts that we haven’t talked about that they could represent physical items you can imagine keeping an indelible and public record of a deed for your house or title for your car in a blockchain they’re also seen as thousands of other uses and development today some folks have believed there will be tens of thousands of block chains in the future to manage all sorts of things so it’s really being seen as not just for money some final thoughts the Winklevoss twins Cameron and Tyler of early Facebook of Fame they are very much involved in Bitcoin have made substantial investments in it they believe that the market cap could grow to four hundred billion now that’s that’s a huge increase from today’s six and a half billion and they equate that to the size of the modern-day payments and industry where you would become the combining American Express Visa MasterCard Western Union that’s about their combined value that would mean that the Bitcoin price right now would grow to over $25,000 per Bitcoin another justification for bits to make it easier to use and a quote that that Tyler made was if Bitcoin is a better gold or seen as a type of gold like asset then it would be in the trillions on a market cap and we feel that those are very real possibilities so the opportunities are great and there’s a lot of excitement about the possibilities moving forward I want to invite you to visit us at the Bitcoin tutor.com we have a free how to videos to get started with your own wallet and how to safely connect to your bank account we have informative blogs that I update on a regular basis with my perspective of the news I also offer consulting services to individuals and to companies who are looking to really take a look at the big picture here and how to safely buy and sell coins and there’s also a number of programs that we’ll be announcing here in 2016 the book is also available online at your favourite bookseller and an amazon online in multiple formats and I’m also available in Twitter Facebook and YouTube may your journey in Bitcoin and blockchain be a valuable one thanks

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