IZZY's Ultimate guide
to DIGITAL CURRENCIES
(aka cryptocurrencies)
@izzydoesizzy
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![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916410/bitcoin.png)
(and some stuff about Bitcoin I guess)
Intergalactic Mecha-Dinosaurs
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@izzydoesizzy
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How Did I get into it?
@izzydoesizzy
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Probably like everybody else...
I made a bit of money
@izzydoesizzy
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The Story
- 2012 Bitcoin hype
- I wanted to buy some Bitcoin in December 2012 when it was worth $13
- Virtual exchanges felt sketchy. Verification, uncertainty etc.
- So I didn't do it
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916291/bitcoin2.jpg)
@izzydoesizzy
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I MISSED THE BOAT
- Dec 2012 => Dec 2013
- $13 📈 $1300 - FUCK!
- Huge spike
- I missed the boat
- Bitcoin crashed big time and everyone stopped caring
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916319/ffuuuu.jpg)
@izzydoesizzy
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FF A Few years
- July 2015 (1.5 years after the spike)
- Bitcoin ATM at a bar
- I put in $60 and forgot about it
- In April 2017 Bitcoin spiked again. Even harder.
- My $60 📈 $400
- Took it and reinvested into Ethereum
- My $400 📈 $800 in 2 weeks
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916324/bitcoinatm.jpg)
@izzydoesizzy
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In may 2017 I made $2000
From my Ethereum
(This is not an endorsement, it's dumb luck)
@izzydoesizzy
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needless to say... I was like...
@izzydoesizzy
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@izzydoesizzy
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but enough about me...
@izzydoesizzy
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Where are things today?
- In April 2017, the global market cap for cryptocurrencies was worth $30B
- Today, in just a few months, it has surpassed $100B
- (Disclaimer: that's not how much people have put in, that's what it is currently valued at)
- Bitcoin makes up about 44% of that
- Today there are over 700 different currencies
- Every major country in the world now has a digital exchange
@izzydoesizzy
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so....
7 important questiONS
- WTF IS BITCOIN?!?!
- What is a wallet?
- What is "mining"?
- What factors influence rise and fall of prices?
5. What are the differences between digital currencies?
6. What are smart contracts?
7. What are ICOs and token sales?
@izzydoesizzy
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Question 1
WTF IS BITCOIN?
@izzydoesizzy
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WTF IS BITCOIN?
- First decentralized digital currency
- Created and held electronically
- 21 million total - forever
- Transferred directly (no banks, no fees, worldwide)
- Buy/trade on virtual exchanges
- Keep in a digital wallet
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916356/bitcoin3.jpg)
@izzydoesizzy
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QUESTION 2
What is a wallet?
@izzydoesizzy
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WHAT IS A WALLET?
- Allows you to store, send, and receive currency
- 2 kinds of wallets
- Software Wallet
- Hosted Wallet (Coinbase etc)
- Be careful, don't fuck up
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916365/btcwallet.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916370/moniez.png)
@izzydoesizzy
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QUESTION 3
WHAT IS "mining"?
@izzydoesizzy
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What is "Mining'?
- Bitcoin is decentralized
- Transactions are recorded on a decentralized public ledger (the blockchain)
- Bitcoin needs this to survive
- Transactions are verified through difficult problems
- They take time to compute to prevent fraud
- In exchange you get rewarded in Bitcoin.
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916378/mining5.jpg)
Varying
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916387/level0.jpg)
@izzydoesizzy
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LEVELS
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916387/level0.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916388/level1.jpg)
@izzydoesizzy
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OF
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916389/level2.jpg)
@izzydoesizzy
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SERIOUSNESS
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916389/level2.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916390/level5.jpg)
@izzydoesizzy
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Mining gets harder
-
The Bitcoin network produces a constant amount every 10 mins
-
The difficulty of solving the mathematical problems has to increase
-
TL;DR = The more miners, the longer it takes
-
It would take 51% of the network to create fraud
-
You can't erase the past though
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916378/mining5.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916401/mining01.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917065/Screen_Shot_2017-06-18_at_11.13.09_AM.png)
QUESTION 4
What influences the rise and fall of prices?
TL;DR
It's about How many people HAVE IT
(Supply & Demand)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917018/coaster.gif)
Influencing factors
- Government regulation
- Media influence
- Stability (no inherent value)
- Supply & demand
- Mainstream acceptance
- Business dumping
- Market manipulation
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3916401/mining01.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917031/batcoin.jpg)
QUESTION 5
WHAT ARE THE DIFFERENCES BETWEEN CURRENCIES?
Differences
- "Altcoins"
- 700+ currencies
- What makes them different?
- Lots of clones/variations
- Different models, different distribution methods, different proof-of-work
- More privacy, different programming languages, speed
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917048/altcoinz.jpg)
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917051/altcoinp.jpg)
Top currencies today
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917058/Screen_Shot_2017-06-18_at_11.05.49_AM.png)
Question 6
What are smart contracts?
Ethereum + Contracts
- Where blockchain as a technology gets interesting
- Programatically-enforced contract based on a predetermined set of outcomes
- The rise of decentralized apps
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917069/ethereum.jpg)
Decentralized Apps
- dApps
- Self-executing smart contracts
- Imagine an app just like Airbnb that didn't take a 20% cut of your business
- Verify winners, and send out payouts accordingly
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917084/decentralized.jpg)
QUESTION 7
WHAT ARE ICO'S and TOKEN SALES?
ICO's and TOKEN SALES
- May/June the months of ICOs
- "Initial Coin Offerings"
- An ICO is a fundraising tool that trades future new coins in exchange for cryptocurrencies of immediate, liquid value.
- What is it?
- They were called "Appcoins" for a while
- Now more commonly referred as "Tokens"
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917116/ico2.jpg)
HOW TOKENs work
- Example: Cloud Storage
- Pay Dropbox a monthly fee
- With dApps, devs get paid differently
- Developers can sell or give away tokens to people who want to use the app or support its development
- Can finance the development of the project
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917146/tokenz.jpg)
sCAMS
- Be careful before investing in token sales.
- The blockchain ledger can't be hacked, but things can happen
- Virtual exchanges aren't necessarily safe (Mt Gox)
- Digital wallets your accounts can be targeted
![](https://s3.amazonaws.com/media-p.slid.es/uploads/689463/images/3917130/hacker1.jpg)
PLEASE
BE CAREFUL
It's a whole new world out there and there's a lot we don't know.
The Ultimate Guide To Cryptocurrencies
By Iskender Piyale-Sheard
The Ultimate Guide To Cryptocurrencies
- 2,785