Table of Contents

Preface xi Acknowledgments xiii About the Author xv Chapter 1 Bitcoin Is a Bubble 1 The Quest to Buy Bitcoin 3 Bitcoin Enlightenment 6 Currencies Are a Matter of Trust 8 What Is Bitcoin? 10 Is It a Currency? 13 It s Revolutionary 17 Chapter 2 Understanding the Digital Gold Rush 19 The Language of Bitcoin 22 How Do I Buy Bitcoin? 26 Who Gets It? 30 The Gold Rush Is Just Starting 31 Chapter 3 Bitcoin Is More than Digital Gold 33 Searching for Satoshi 34 The Search 37 Why Is Satoshi a Genius? 44 Bigger than Satoshi 46 Chapter 4 Byzantine Generals Problem 49 How Does Bitcoin Solve the BGP? 52 51 Percent Attack 55 An Elegant Solution 57 Chapter 5 A Decentralized Financial System 59 Grand De-Central Station 63 What s at Stake? 69 Central Banks 72 Bitcoin Is the Catalyst 73 Chapter 6 What Do You Call a Bitcoin Miner? A Banker 75 How Does a Bitcoin Transaction Work? 77 What Is Cryptography? 78 Still Want to Be a Miner? 82 Do We Need Another Bitcoin? 88 Chapter 7 Nautiluscoin 0 to $1 Million in 60 Days 91 Creating the Coin 94 Did It Work? 104 Chapter 8 Building the Nautiluscoin Economy 107 Dynamic Proof-of-Stake 110 Other Policy Tools 113 Alternative to Gold 115 Money, Made Better 116 Financial Market Integration 117 Special Drawing Rights 119 Why NAUT? 119 Chapter 9 Investing and Trading in Alternative Currencies 121 A New Investment Class 123 Valuation 129 Exchanges 133 Investment Vehicles 134 Asset Class Growth 136 Chapter 10 Regulation 139 Regulatory Agencies 140 Challenges to Regulation 147 Pushing on a String 147 Chapter 11 Smart Money: Set It and Forget It 149 Rules of the Road 151 Smart Contracts and Property 152 Ethereum 155 Cryptoequities: A New Type of Investment 160 Decentralized Autonomous Organizations 161 Professor Money 162 Chapter 12 Everything You Know about Business Is Wrong 163 Cryptonomics 166 Growth Share Matrix 169 Learning Curve Effects 171 Porter s Three Generic Strategies 172 Human Resource Management 173 Fueling the Sharing Economy 174 The Future Just Might Work 176 Appendix 1 Department of the Treasury Financial Crimes Enforcement Network Guidance FIN-20 13-G00 1 Issued: March 18, 2013 Subject: Application of FinCEN s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies 179 Currency vs. Virtual Currency 180 Background 180 Definitions of User, Exchanger, and Administrator 181 Users of Virtual Currency 181 Administrators and Exchangers of Virtual Currency 182 Providers and Sellers of Prepaid Access 185 Dealers in Foreign Exchange 186 Appendix 2 New York State Department of Financial Services Proposed New York Codes, Rules and Regulations Title 23. Department of Financial Services Chapter I. Regulations of the Superintendent of Financial Services Part 200. Virtual Currencies 187 Section 200.1 Introduction 188 Section 200.2 Definitions 188 Section 200.3 License 190 Section 200.4 Application 191 Section 200.5 Application Fees 193 Section 200.6 Action by Superintendent 193 Section 200.7 Compliance 195 Section 200.8 Capital Requirements 196 Section 200.9 Custody and Protection of Customer Assets 197 Section 200.10 Material Change to Business 197 Section 200.11 Change of Control; Mergers and Acquisitions 198 Section 200.12 Books and Records 200 Section 200.13 Examinations 201 Section 200.14 Reports and Financial Disclosures 202 Section 200.15 Anti Money Laundering Program 203 Section 200.16 Cyber Security Program 207 Section 200.17 Business Continuity and Disaster Recovery 210 Section 200.18 Advertising and Marketing 211 Section 200.19 Consumer Protection 212 Section 200.20 Complaints 215 Section 200.21 Transitional Period 215 Index 217

About the Author

BRIAN KELLY is a CNBC contributor who regularly appears on Fast Money, Halftime Report, and The Kudlow Report. His 20 years of success in U.S. and foreign currency and equities trading have gained him enormous respect among the clients of his investment management firm, Brian Kelly Capital, LLC, which focuses on global macro and currency investing. Brian holds an MBA from Babson Graduate School of Business, with a concentration in finance and econometrics.