CRYPTOCURRENCIES, THE UNBANKED AND INTRINSIC VALUE

Transcription

1 CRYPTOCURRENCIES, THE UNBANKED AND INTRINSIC VALUE JA S M I N GÜNGÖR GUESTSPEAKER OF COINTED

2 Facebook Post from an Austrian Banker

3 So now we re involved in trying to make sure we get a very efficient digital payment structure set up for all the poorest in the world to get financial products that work for them. - Bill Gates Oct on Bloomberg

4 Unbanked and Underbanked Worldwide: Adults (15+) Having a Bank Account Europe & Central Asia: 51,4 % Middle East: 14,2 % South Asia: 46,4 % Latin America & Carribean: 51,4 % Sub-Saharan Africa: 34,2 % East Asia & Pacific: 69 % High Income (OECD): 94 % The Worldbank (2015): The Little Data Book on Financial Inclusion

5 Cryptocurrency ATMs Worldwide Source:

6 Mobile Device Adoption In 2014, the Asian Development Bank published a study (Financial Inclusion in Asia) saying that 78 percent of the Indonesian populationare considered unbanked. But: Indonesia s smartphone penetration hit 47% in 2016.

7 Let s Review Some Concepts Remittances 230 million people send $500 billion in remittances each year. Labour Market You can receive your salary in Cryptocurrencies. Commerce You can spend your cryptocurrencies directly or via a debit card. Fast Bitcoin was fast before the hard fork, but the core teams tackles the scalability problem. Transparent You see whom you have send cryptocurrency, if you use Bitcoin. Low Feed Fees are low compared to Western Union or Money Gram. The problem are still micropayments. No Permission You don t need to ask anybody for permission to letting you in. Anti-inflationary People in Venezuela started to hold cryptocurreny rather than Fiat.

8 This sound really valuable

9 Intrinsic Value of Cryptocurrencies Cryptocurrencies as Speculative Asset Cryptocurrencies as Financial System Arguments: Bitcoin is a Pyramid Scheme. Cryptocurrencies are the next big bubble. Cryptocurrencies are not backed by real assets, governments or central banks. There are too many cryptocurrencies on the market. A lot of them have no value at all. Developers and miners are in control. Regulations will be kicking in soon. Arguments: Bitcoin has an ecosystem with miners, nodes, exchanges, software and infrastructure providers that back the system. Bitcoin provides faster and cheaper transactions than the traditional financial system. Bitcoin is widely adopted. Only a widely adopted cryptocurrency can be used as a financial system. The Bitcoin scaling debate is going to be solved.

10 [Blockchain] is to Bitcoin, what the internet is to . A big electronic system, on top of which you can build applications. Currency is just one. - Sallie Davies Financial Times Technology Reporter

11 Here s a small math example: Global Remittance Flow = 500 Billion USD 500 Billion / 21 Million = USD

12 $Dennis Porto, Bitcoin Investor and Harvard academic John McAfee, $ Founder of McAfee $Wences Casares, CEO Xapo, Board Member of PayPal

13 Here s another small math example: Apple s Market Cap = 800 Billion USD 800 Billion / 21 Million = USD

14 Comparing Apples with Oranges Apple Bitcoin Ecosystem Number of Users 1 billion? Number of Employees ? Revenue billion?

15 How can we develop concepts to measure the intrinsic value of cryptocurrencies?

16 THANKS! A N Y Q U E S T I O N S?