Common Cents Investment Group

1. Common Cents Investment Group Monday February 2th Welcome Christian Gabis!

2. Agenda • Market Updates • Macro Update – Weiyi • Guest Speaker – Christian Gabis

3. Market Update

4. Bitcoin (BTC) • The 4th High-Tech Revolution: De-Centralization • Information Age; Internet Era • Correponding payment and money transfer system to our age • Revolutionary technology of payment and money transfer • wrt current dominated system based on banks and credit cards • The original BitCoin paper by Satoshi Nakamoto（中本聪）, was published in November 2008. • Nakamoto(2008), “Bitcoin: A Peer-to-Peer Electronic Cash System” • http://bitcoin.org/bitcoin.pdf • peer-to-peer digital currency that functions without the intermediation of a central authority. • Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending, a problem for digital currencies.

5. Bitcoin (BTC) • History & Basics: • In January 2009, the first 50 BitCoins were released.   • From 2009 to 2012, 50 BitCoins are released for every 10 minutes; • from 2013 to 2016, 25 BitCoins are released every 10 minutes; • from 2017 to 2020, 12.5 BitCoins are going to be released every 10 minutes … • Up to the year 2140, the amount of BitCoins reaches a maximum of 21,000,000. • I believe now it is about 12,000,000 up there. • Because amount of BitCoins has a maximum amount, there is noinflation problem. • One BitCoin can be split into smaller units; currently, the smallest unit possible is 10-8, that is 10-8BitCoin = 1 “satoshi”  • Value: • In January 2009, when it first came out: USD $1.00 = 1300 BTC.   • In 2011 1 BTC = USD $0.06 • In 2012: 1 BTC = USD $6.00 • In March 2013: 1 BTC = USD $ 100 • InAugust 2013: 1 BTC = USD $250 • In October 2013: 1 BTC = USD $ 600 • In November 2013: 1 BTC = USD $ 800 ~ 1000 • In December 2013: 1 BTC = USD $1242

6. Advantages • 1. De-Centralization: • designedpeer-to-peer • no third entity can influence and take advantage of the transactions between you and me.  • Actually, the BitCoin system treats the whole internet and all the BitCoin miners on the internet doing the verification work as the third entities, which are de-centralized.  •  cost for verification in BitCoin is just the cost for the BitCoin miners to do the work on the Internet, which is their electricity bill, much cheaper than the percentage charge by the money transfer companies like Western Union, PayPal, and credit card companies like MasterCard and Visa.

7. Advantages • 2. solve the problem of “Double-Spending” • in our lay language, the problem of “fake cash” or “money printing” • BitTorrent and B-Money • Compared to the cash system based on US Dollars, the cost for the Federal Reserve to print money is nearly 0, but the cost to fake a BitCoin is pretty high! 

8. Ideology • Do you trust the centralization / centralized government or not? • Cash / credit card system: based on “credit security.” • BitCoin system: based on encryption / cipher code security

9. Bitcoin (BTC) • Bitcoin is a peer-to-peer digital currency that functions without the intermediation of a central authority. • The concept was introduced in a 2008 paper by a pseudonymous developer known as “Satoshi Nakamoto“. （中本聪） • “Bitcoin: A Peer-to-Peer Electronic Cash System”, Satoshi Nakamoto • http://bitcoin.org/bitcoin.pdf • Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending, a problem for digital currencies. • Block Chain

10. BitCoin (BTC) • Speculate on its value • BitCoin Miner & Mining Machine • New Business & Financial Models based on BitCoin • PayPal

11. Questions???