 So today I am going to talk to you on Bitcoins, the Bitcoin experience. So how many people here understand, know, heard about Bitcoins in the past, quite a few. So how many people actually understand what is a Bitcoin? How many hands got down? And how many people actually have Bitcoins? Only me. Interesting. So when I heard about this Bitcoins, it was very hard to me to understand. I did not get it in the first... I think first time I got to see this in Forbes magazine, it did not get me. I tried to start reading, reading, reading, but it did not get into my brain. And one day my friend called me saying that, hey, I am doing a Bitcoin startup. So I need your feedback on this, can you help me? And then we met in one coffee shop and I was reviewing that particular thing. With my top knowledge on Bitcoins, I tried to evaluate that product. And then I got a story, I started reading. It made me a little bit interesting. And then I started attending some Bitcoin groups. So if you want to understand what Bitcoins are, let's go back into the future. Let's understand the monetary system. So I am taking you back, you guys, to somewhere around 6,600 DC. So 6,600 DC, how people used to translate, how people used to exchange, there is something called people used to follow the monetary system. What the monetary system means? People used to exchange with the tools, food or livestock, livestock or exchange unit. Let's say a person who has a chicken and a farmer who has agriculture foods any kind of agriculture, he will exchange his chicken in the form of he will exchange his fruits. It seems like that. But actually this system has a problem. The biggest problem with this system is, assume that this person has a fish, it has an expiry date, he can't hold that fish for a longer time. So what happens is, let's say, so there is another problem again. The other problem was, if a person don't want a fish, but this guy has a fish, so how can we exchange? This value goes down. People say, I will not pay. So if I am desperate of that particular food, if I want it, then the price goes up. And then, in 600 DC, points came into existence in the form of exchange. These points were form of different shapes, different metals and different values all together. In 800 and 680, this paper currency came into existence in time, dynasty and chain-up. So this started from some of them were on the form of leather, somewhere on the plastic, somewhere on the paper and till now till present we have this existing of paper currency. In 331 BC, people used to have trade access all the time, right? So for trade, basically carry all the stock or carry for the trade of business, taking gold is very difficult. So people used to basically write that particular money, say that they go order. So write a order that pay this guy, so it's gold or whatever. And from 350 years, actually British started this printed checks. So even today, we have this checks system. And slowly, slowly because of these evaluation of online system and instant crafts and all other stuff, it's getting actually, nobody's using checks. The gold standard, somewhere around 18, 16, England has actually started adapting money to their currency to this gold standard. And 1900, US also started adapting to it. And 1930, they decided not to follow and they have their own system. And currently, at present, only few countries follow this gold standard benchmarking and not every country does that. In virtual currencies, after that a lot of innovation happened, right? So it came into online once the existence of internet. So a lot of this innovation happened and virtual currency came into picture. So what is a virtual currency? Virtual currency is a virtual money, which basically, which has all the characteristics of money. But it basically sometimes it has all the parameters of the money. But generally, it's not, it's basically created but sometimes it's created by nervous. And if you want to categorize these virtual currency, it can be categorized into three factors. One is closed system, the other is open system and the hybrid system. So in closed system, nothing to do with physical currency or physical services. Everything to deal with is virtual services. Whereas open system is all about physical money, physical services and virtual services. So let me show you some examples. So how many people remember this? What does Mario game means? So 100 points equals to one life, right? It's all virtual. So semi-model, that is family. So what you can do is, one day my wife said, like, you know, I want a tractor. I said, what? I said, no, I want a tractor. My formula is getting dried. Then she said, no, it's virtual currency. Give me a credit card. I want to buy some points. Buy that. So you're using physical currency to buy virtual services. Same with hybrid. So most of the times, these days you see in any malls, there are like these children's play area, right? So in that children's play area, pay physical money. You get these points. And play your game. If you win that particular game, you get these tickets. These tickets can be exchanged first for prizes or sometimes cash. So in hybrid, so generally like, you know, most of the people fly and any of these A-miles, right? A-miles or trade cards. When you spend something, you get these miles. These miles can be exchanged for other services or you can buy tickets. The same thing like you get for petro miles and all of this stuff. This can be capitalized as virtual. And they are in between like, you know, from 1992 to 2012. A lot of innovations happened and a lot of these currencies came into picture. We know these two currencies. But these are fake, including Facebook points and Microsoft points. And then, recently in 2009, we imported something called fake points. What are these fake points? Who did it? So there is this person called Santoshina Pomoto. No one knows him. So this guy really thought about the whole financial system. And he thought, he thought that like, you know, so why can't I create some virtual currency? They're actually like, you know, why does these banks get involved into that? And he created this eight page white paper. It made sure, made it available to the developer community. And slowly from 2008 to 2009, so all these developers started looking at that and created this open-sized software called BitPoint Network. And today, if you see, one BitPoint equals to $335, which is actually $21,000. So if you see from like the last few years, so last, so it heated it basically like one BitPoint was more than $1,000. And slowly, slowly I think like slowly fall down and currently it is somewhere around $350. And how does it, how does the currency keep changing, fluctuating? So generally in regular financial segment, the regular money, it's always depends upon the inflation thing. Here it's just like stock market, whereas it's all depends upon demand and supply. So if you categorize both of them, centralized banks, generally, it's centralized network BitPoint. So whatever transactions happens across, it goes through bank. Whereas BitPoints, it is centralized, whereas it's also called as peer-to-peer network. And the famous personalities like Bill Gates and Al Gore, who are really respected, think that this technology is awesome. To understand BitPoints, there is something called mining. So mining is a process of creation of a BitPoint. So these BitPoints, so basically let's say if you want to know about car, if you want to drive a car, you don't need to really understand how your car engine works, right? So because it's a little bit complex, because it's totally based on cryptography and mathematics. When a complex algorithm is solved, BitPoints gets generated. So these BitPoints actually, so there is an end date here. So it's not like, you know, it's generating. 2140 is the last year that BitPoint gets generated. And whatever BitPoints generated in a lifetime is 21 million. These 21 million BitPoints eat the rotation across. So how many BitPoints mine till today? If you see this graph from something around 2009, so till now on an average of 12 billion less BitPoints in circulation today as of today. And if you see this distribution chart, so there are 28, 28.9% are with 47 individuals. And 880 individuals have 21.5%, 0.5% of BitPoints. And almost 20,000 individuals has 21.4% and more than 1 million individuals have the rest of these BitPoints. And some of the BitPoints are lost. And Valets, what is a Valet? So Valet is nothing but basically Valet is the place where you store all your transactions. These transactions, so every BitPoint has a Valet. Valet is nothing but an address. So this is the huge, this is your, any BitPoint Valet has an address which also represented by QR code. And you can, so if anyone wants to send you or if you want to get BitPoint, you need to send that address which is very similar to, it's only in numbers because of cryptography. And transferring a BitPoint is pretty simple. It's as simple as sending an email or by BitPoint address. Two ways you can do it, you then you say if you want to send BitPoints to someone, basically you say send money, give that particular address. And it also show you basically like you know how much BitPoints you are sending, which also equivalent to value of what which currency. Rajeev, question. So the Valet has a personalized storage device for the BitPoints? Yeah, so there is a, yeah storage is a personalized Valet, Valet is a personalized storage device. So Valets can be on phone, Valets can be on cloud, Valets can be on email, or Valets can be on your system based on some people, so some people want to make it synced, so they will keep it their own systems. Sometimes for cloud based, it basically like you know you can use any of these, most of the exchanges which provides these online Valets, where it creates everything and it creates online Valet, you don't need it, it's still device for free. And that number, that serial number is the address of my wallet? Yes, so any BitPoint address, Valet address, should be pretty similar like this. And I'm going to show you my BitPoint. Or does each coin have an address in my wallet? So each coin don't have an, each transaction has a number and basically this is my fixed number, whereas like you know how you have your email ID? So this is my ID for my wallet here, I can track my transactions. Okay, so blockchain, so what is a blockchain? So here this concept is pretty interesting here in the BitPoints thing. The concept here is basically, if I send money to someone else, if I send some money to someone else, what happens is, I go to India, this is a peer to peer decentralized thing, right? So what happens is, it goes and updates to all the people. It goes and updates, it's basically like blockchain is nothing but you can imagine as a public ledger. Okay, so everyone can see, there is no banking mode, everyone can see who is transferring to whom. Your personal identity is not revealed, but this wallet is sending money to this wallet, everyone gets updated. And it can't be, double transactions will never happen, it's all transparent, it changes. So there are 70 players BitPoints in the market internationally. So these are most of them are startups, these are basically what these exchanges does is, whether you can exchange your BitPoints and get money, or you can sell those to buy your BitPoints. Buying in BitPoints, it's pretty simple actually. Like you know what, this is one of the exchange which I use, which is called Coinbase. So you go and link your bank account and say how much you want to, let's say I want to buy 25 BTCs for Bitcoin. I say like look, I want to buy 25 BitPoints. And it tells you like you know, your 25 BitPoints will cost you this much dollars. And you link your water payment methodologies and the people or all your credit card or your bank ID. And you can buy your BitPoints immediately. Same with payments. This Bitcoin is basically, it's open source software and for merchants it's pretty easy. It's free for them. So WordPress, Joomla, Machinto, any kind of frameworks. This supports this thing. You can even, for that case, blogspot, blog or everything. So you can just basically take that code, put it on your interface. It generates the BitPoints and you can keep sending. So you can have a valid limit of 15 minutes and you can do the transactions. And like this, you can have this payment gate list in your shopping cart. You can have the BitPoint, the deposit. One question here. Yes. I want to buy one item which cost me 150 dollars. Okay. But the Bitcoin value is 350 something, right? Yeah. So how it's going to work? See, one beauty about BitPoint is, BitPoint is divisible, infinite. Okay, whereas like say, you take one dollar, you can hardly divisible by 100 cents. Or like take a rupee, it can be hardly divisible by 105 cents. But BitPoint, it gets into micro level transactions you can do it. I'm going to show that. So what, see, not how, let's say I want to buy something in Amazon. Can I buy it? Yes, you can buy it. There are hundreds of ways. So you can go to these sites like gift.com or some of the dot coms where using BitPoints you can buy more than 200 plus payment cards. Like you have these cards, right? So Amazon card or CVS card or anything you can go and do that. And recently, a couple of weeks back, PayPal actually started having it taking baby steps into accepting this BitPoints thing. And I think like in the future most of the people will come again. And there are also BitPoints in the market. BitPoints, ATMs in the market. And there are also BitPoint machines, the ATM cards. And there are also BitPoint machines where you can access. So instead of paying with your credit card, you can just do this transaction with your BitPoint thing. And there are also various devices. And you have wireless devices available in the market where you basically use this NFC earphone communication technique where you can do this transaction directly. This is a startup which I was talking about, which I was doing the UX review. So I think like, you know, let me show you a video than me talking on this. This is one which make me... There we say, thank you. This is the power of this, right? So before touching, taking an example of these guys are working with SLI and multiple things. So, think about the power. Like, you know, the power of your network, you can work with it. Okay? So, without taking your hand from your steering wheel, you can say like, you want to do it, yes sure. Payment care should get through. Think about the power. Think about the technological power. Yes, kidding. We can do that. Basically like, you know, this is a parallel. These are basically devices which they are focusing more on. They believe that, on Bitcoins, they believe that Bitcoin has a future and future will change, because it's an internet money transaction which basically all digital... So, Bitcoin supports all the digital life transactions. Anjit, I don't know whether you're going to cover this, but how does one generate Bitcoins? Buying, I can understand. So, the same thing which we talked about earlier in the mining. So, it's basically Bitcoin gets generated by solving the complex... Sir, does it mean only that people who are into solving algorithms, mathematicians... No, it's not. It's basically it's solved by computing processing power. Okay? So, cryptographers and generally mathematicians understand that you need the power to compute that, solve that puzzle. Take it in, let's think in that direction. There's something called Bitcoin blocks. These blocks needs to be solved. So, multiple supercomputer power. So, there are also a lot of startups who actually buy these Bitcoin hardware, all these processes, super jumbo processes, and basically their business is to just mine. They burn this electricity and it's all a little bit tough to understand. I think the same thing I mentioned, to drive a car, you don't need to understand how the engine works. Right? Do you know the cost for the hardware? Hardware is just to generate... So, generally hardware is also very expensive. It's not that cheap. That's the reason they say that, like, you know, the value of one Bitcoin to get generated is, like, you know, a lot of power cost. Generally, they calculate this California power price and also the processor cost because they keep running all the 24 hours. And these algorithms to be solved, are they some real-life problems? No, it's basically, like, you know, this was... The whole paper which, like, you know, Sandharshi Nakamoto, you know, pseudo guy, who created that, he really thought well and basically that's the reason people believe in that. A lot of thousands and thousands of thousands of developers and a lot of economists really believe in that. But banks don't believe it. That's a separate thing. But there's something in that. That's the reason there is that much following. And there is something called... From February 2011 to 2013 of July, there is a website called Silk Road. This is very well-known for... It's also for the underground of Amazon and eBay kinds, basically, like, you know, for selling these illegal drugs. Okay, and I don't know what are the underground thingies, but, like, you know, they keep selling it. And what FBI did is they seized that particular site and they hand over all these things. And out of that, 9.5 million transactions happened with Bitcoins. So Bitcoins have used... They're using Bitcoins for buying all this because, like, you know, you can't place the people, right? It's enormous. And what this US government did is, after that, they auctioned all these Bitcoins and they were almost 60 to 70 with us came into this thing. And finally, the highest... It was given to the highest bidder. He's actually, like, you know, one of the famous VC in the Bay Area for Tim Trapper, who really... Who's actually a great believer of Bitcoin startups, who funds all Bitcoin startups. And if you see this, not every current country accepts Bitcoins as of now. And this was banned in China and Thailand. And USA and Canada set some regulations and stuff. And actually, Germany keeps doing the taxes of it. If you do a Bitcoin transaction and you want money, and you need to pay taxes of it. And it's an open source software, right? Like, you know, if you create a website, there are 100 duplicates, right? Same thing happened to Bitcoins. Bitcoin is a software. It's also called as Linux money. You know, Linux, right? So, there are almost 17 plus different alternative currencies came into the picture. These are also based on Bitcoin. Maybe like different softwares. Yes, Kiran? If you're in New York and I'm in India, and you can search with Bitcoin, India's government is not going to tax me, but the government is going to tax me. No, basically, until and unless you do it in Bitcoin, I don't think so. Basically, governments are unclear about Bitcoins. They are still setting up this thing. Because the whole adoption is pretty fast, so it takes time. But all governments are pretty serious about it. They have a panel. Even India RBI has a whole panel, which is basically seriously thinking about Bitcoins. The biggest threat for RBI is basically a lot of money can happen with this. Like, how do they tax? Let's say you are selling money from U.S. to India. How do the government tax? That's a big problem, right? So they are actually thinking about how to solve that problem. See, because it's all about user adoption. When people are accepting it, right? It gets popular. You can't stop it. It's very difficult to stop. Let's say, earlier in 1996, 1995, how many people has a website? How many people has a website? Now, can you stop? It's very difficult. It's very difficult because every day, day to day, life is totally linked with Internet, right? Just this. So same like that. So out of all those Bitcoins. So let me start thinking about it. I started thinking about Bitcoins. So let's take an example of Facebook Live. What does Facebook Live mean? Does that mean anything? So we keep liking it. I'm sad today. I'm going to try today. This is my photo. My graduation. I'm getting boring. My girlfriend writes. What does that mean? So let's take an example of this. Rise for Big Challenge. It's basically very popular. Rise for Big Challenge, right? So instead of people liking it like that, like, like, like, like. So what if a transaction like, you know, micro transactions, you can do a Bitcoin. One light equals to some point of traction of a Bitcoin. It's a money. It's a donation, right? People like it. It gets donated. Same thing like, you know, we recently did a spacecraft on Mars. If people, the same thing people was tweeting, sharing and all of this stuff. Imagine the same tweet equals to some point of traction of something. You get a donation for it. But one more perhaps in another brand. Is it right? So for anything, it sounds like, let's talk about postures. So there's a payment freedom in very low space. You can send money to any place, to any place. And very few risk with our merchants. And you have security and control. It's transparent. And you can do multiple micro transactions. And it's global, globally accepted. If I want to send $2 to Africa, somewhere in Nigeria, you can do it with Bitcoin. Whereas if I want to do it from a bank transaction, I should pay $30 as a transaction fee. So, in negatives, there are definitely negatives on this. One is basically acceptance. There's not much acceptance. Second is reliability. Third one is if you lost your ballot, your Bitcoins are lost. That's it. No one can do anything. And price stability. You don't know when it goes up, and when it goes down. It's not in the because of market fluctuations. And no way of protection, let's say. So there is no protection and lack of regulations. So if you see this whole thing, try to connect all this door from its perspective. The biggest challenge is, I think this one is difficult to understand. And it's based on mathematics and cryptography. It's difficult to understand. I can't explain my mom what is Bitcoin is. In fact, I can't even explain what's a virtual currency is. And it's very long. Look at this address. It's difficult for me today to remember my telephone number. 20 plus is basic. And not everyone believes it's still currency. And there are multiple Bitcoin ballots. Each UI looks different. And it is very different. And governments are very unclear about BTC. It's very challenging for illegal usage because it has high value. It's basically enormous. It's pretty difficult. With most of the chances that all this stuff happens. A lot of people are unclear in terms of they don't know what to do with Bitcoins. And one more biggest thing is because I told you, Bitcoin network is a big software and it's still on beta. Everyday a lot of check-ins keep happening on the core base and it's still on beta. It needs to be stabilized. Some point up. Because there are tons and tons of developers are actually writing board on that. And it's a new week. It's pretty few years old. And can't wait. The biggest problem which I see from a UX perspective and from my personal perspective is this is my biggest problem. Okay? So there is a transaction which I need to happen 70 rupees transaction. 69 rupees. Let's say my auto bill is 69 rupees. I'll just give you 70 rupees and just walk on. No change. But here this point transaction also matters because Bitcoin equals to 20,000 years. When the point transaction may end up more than 2,000 or 3,000. So that is one thing. And if you start looking at the whole Bitcoins thing what I personally think is it's still a new week. It's still basically like you know in terms of still like how Internet was in 1996 it's still like that in the very steps. I think it's an opportunity for a lot of startups to actually create businesses on this Bitcoin network and a lot of startups actually don't get. And it's an open source initiative. So anyone can actually like you know 10 dollars has an idea or they can actually create the code and check it. Or basically they can give you the code or create businesses around of it. And it's also opportunity for governments actually. Governments are actually seriously thinking about this. How to recreate this and how to put like regulations on the top of this how to actually like you know avoid this negativity of this or how to actually safeguard this or maybe how to tax money on this. So that the government gets back. And from UX actually for developers and designers cryptocurrency, cryptography actually it's in your domain, brand new domain people who has knowledge on cryptography gets more jobs. Because when I went to one of the Bitcoin meetups so people were asking like you know I'm looking for designers and developers who understand cryptography because because this is so complex and it's all virtual and you need to deal with interfaces. UX plays in more biggest, biggest, biggest role in this kind of thing. Being said personally I want to be neutral whether it's good, whether it's bad or something but looking at this whole technology whole the way of mining of Bitcoins I'm really excited. And I think like you know lot of innovation keeps happening. It's all newbie like you know we saw lot of innovations from like you know going to school going to people, the children going to school from books and now people are going to type apps and like you know so tomorrow they'll be with Apple Watches and you don't know things are going very drastically and I'm really excited with that and I think after some point of time it gets more secured and everyone's environment keeps regulating and this will become our automotive currency. So thank you very much.