Bitcoin 2015 - Nick Sullivan ChangeTip

Bitcoin  -­‐  2015  and  Beyond  Nick  Sullivan,  CEO/Founder  of  ChangeCoin  

www.changeCp.com  

Technology  Revolu.on“Eventually  mainstream  products,  companies  and  industries  emerge  to  commercialize  it;  its  effects  become  profound;  and  later,  many  people  wonder  why  its  powerful  promise  wasn’t  more  obvious  from  the  start.

What  technology  am  I  talking  about?  Personal  computers  in  1975,  the  Internet  in  1993,  and  –  I  believe  –  Bitcoin  in  2014.”

     -­‐-­‐  Marc  Andreessen,  creator  of  Netscape,  founder  at  Andreessen  Horowitz,  in  his  ar8cle  on  Why  Bitcoin  Ma=ers.

“Bitcoin  is  a  remarkable  cryptographic  achievement.”

     -­‐-­‐  Eric  Schmidt,  CEO  of  Google  !

Old  Money  -­‐  Fric.on

Fees  • ACH  (typically  $0.25  -­‐  $0.45,  up  to  $10  for  same-­‐day)  • Credit  Card  (1  -­‐  3%,  plus  flat  fee)  • Domes.c  Wire  Transfer  ($15  -­‐  $35)  • Interna.onal  Wire  Transfer  ($25  -­‐  $75)  

User  Experience  • Enter  payment  informa.on  • On  another  site,  breaking  flow  

Time  • Mul.ple  hours/days,  only  on  “banking”  days

Global  Currency

Anonymity Low  Transac6on  Fees

)?

• Neutralizes  currency  across  borders  

• Common  store  of  value

• No  need  for  personal  informa.on  to  send  payment  

• Protects  privacy

• Send  across  the  globe  in  minutes  for  less  than  a  penny

Why  Bitcoin?

SmallTransac6ons

• Amounts  as  small  as  1  satoshi  (1/100  millionth  of  a  bitcoin)  can  be  sent  (currently  ~$0.0001)  

Reduce  Fric.on

Exis.ng  transac.ons  become  easier.  Example  -­‐  Cross-­‐border  remiKances  • Coins.ph  in  Philippines  

• Best  “last  mile”  Bitcoin  infrastructure  in  the  world  • 0.5  -­‐  2%  instead  of  9%  for  Western  Union  • Less  than  1  day,  365  days  a  year  

• Pademobile,  similar,  for  Mexico  • 37coins  -­‐  Bitcoin  over  SMS  • BitPesa  -­‐  Bitcoin  payments  to  mobile  phones  in  Kenya  

• 3%  instead  of  14  -­‐  24%  for  Western  Union  

Leapfrog  to  Bitcoin!

• 5.5  billion  people  worldwide  are  unbanked  or  underbanked  • Philippines    

• 20%  have  a  bank  account        • 5%  have  a  credit  card  

• La.n  America  • 32%  have  a  bank  account  • 16%  have  a  credit  card  

!

An  opportunity  exists  for  these  emerging  markets  to  leapfrog  over  costly  banks  and  credit  cards  and  go  straight  to  digital  currencies  for  electronic  payments,  commerce,  and  money  transfer.

Make  payments  easier

Money  flows  more  freely  around  the  globe

New  human  behaviors,  vehicles,  and  markets  are  created

Micropayment  Infrastructure    for  the  Web

Send  Money  Over  Social  Media

Men.on  @change.p  and  an  amount

We  respond  with  a  link  to  collect

Where  else?

Currently  Supported Upcoming

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Mar Apr May Jun Jul Aug Sep

Social Accounts Connected Tips Users

Viral  Growth  -­‐  30+%  MoM

Bitcoin  +  Social  Media  =  Mass  consumer  adop.on

Other  Uses  of  Micropayments

• Disrupt  the  online  adver.sing  ecosystem  • Are  ads  are  the  right  way  to  mone.ze  content?  • Real  value  chain  is  the  producer/consumer  • Lacking  micro  payment  infrastructure  

!• Mesh  networks  -­‐  everyone  is  an  ISP,  by  the  minute  !• Chari.es/causes,  fundraising,  crowd  funding  

• #icebucketchallenge  could  raise  money  over  Twioer  • Micro  crowd  fund  projects  

Micropayments,  con.nued

• Micro  Labor  -­‐  new  view  on  outsourcing  • Next  step  of  Odesk,  Fiver,  Mechanical  Turk  • Reviews  • Social  Sharing  

!• Direct  paid  user  acquisi.on  

• Instead  of  paying  up  to  $50  to  Facebook  or  Google  for  the  user  to  click,  pay  the  user  directly  to  try  your  product  

!

!

!

Other  Disrup.ons

P2PPayments

Fundraising  Chari.es/Causes

RemioanceGiring

Disrupt  

PayPal  GirsGir  CardsCash  Girs

Disrupt  

ContentMone.za.onMicro-­‐Loans

Disrupt  

NGO  Funds  Dispersal  Crowd-­‐Funding

Dona.ons

Disrupt  

Wire  TransfersACH

Money  Transfer

Social  Purchase  

Pay  directly  over  

InstagramTwioer

Bitcoin  -­‐  2015  and  Beyond  Nick  Sullivan,  CEO/Founder  of  ChangeCoin  

www.changeCp.com  Currently  Fundraising  

Appendix

Government-­‐backed  currency?

Crazy  bet:  Within  10  years,  a  government  will  announce  that  they  are  using  a  digital  currency  as  their  primary  currency.  !

Pros:  • Traceability/accountability  • Criminal  ac.vity  discouraged  • More  taxes  (less  underground  economy)  Cons:  • Loss  of  control  !

Ecuador  and  Bolivia  already  have  plans  

References/Links

• hops://www.change.p.com/  • hop://datatopics.worldbank.org/g20fidata/  • hop://business.inquirer.net/54393/most-­‐filipinos-­‐have-­‐no-­‐bank-­‐accounts%E2%80%94bsp-­‐survey  

• hop://www.cgap.org/countries/la.n-­‐america-­‐and-­‐caribbean  • hop://www.capgemini.com/resource-­‐file-­‐access/resource/pdf/wpr_2013.pdf  

• hop://www.coindesk.com/bitcoin-­‐venture-­‐capital/  • hops://coins.ph/  • hops://www.37coins.com/  • hops://www.pademobile.com/en/us/  

P2P  Payment  Networks  -­‐  Revenue

2013

 Reven

ue  

In  Billions

$1,400 $2,800 $4,200 $5,600 $7,000

Square MoneyGram Western  Union PayPal

P2P  Payments  by  Spend

2013

 Es.mates  

in  Billions

$100,000 $200,000 $300,000 $400,000 $500,000

Cash  Girs Gir  Cards  (verified) Dona.on Remioance  (verified)

Payments  Market

Bitcoin  Investmentin

Milli

ons

0

7.5

15

22.5

30

Chain.com Circle BitPay Xapo Vaurum Korbit Vogogo

$279.83M  in  investment  to  date*

EcosystemePaymentsMoney  Transfer

Crypto-­‐CurrenciesRe-­‐loadable  pre-­‐paid  Cards

ACH  Wire  EDI  Paymode-­‐X  Syncada  Sungard  

Visa  MasterCard  

American  Express  NetSpend  Payoneer  

Walmart  MoneyCard  !!!

PayPal  MoneyBookers  Western  Union  

MoneyGram  Remit2India  

Xoom  Travelex  Walmart

ChangeCoin  Circle  BitPay  Xapo  Blockstream  Coinbase  Stripe  BitCredits