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.

• Preface xiAcknowledgments xiiiAbout the Author xvChapter 1 Bitcoin Is a Bubble 1The Quest to Buy Bitcoin 3Bitcoin Enlightenment 6Currencies Are a Matter of Trust 8What Is Bitcoin? 10Is It a Currency? 13It’s Revolutionary 17Chapter 2 Understanding the Digital Gold Rush 19The Language of Bitcoin 22How Do I Buy Bitcoin? 26Who “Gets” It? 30The Gold Rush Is Just Starting 31Chapter 3 Bitcoin Is More than Digital Gold 33Searching for Satoshi 34Why Is Satoshi a Genius? 44Bigger than Satoshi 46Chapter 4 Byzantine Generals’ Problem 49How Does Bitcoin Solve the BGP? 5251 Percent Attack 55An Elegant Solution 57Chapter 5 A Decentralized Financial System 59Grand De-Central Station 63What’s at Stake? 69Central Banks 72Bitcoin Is the Catalyst 73Chapter 6 What Do You Call a Bitcoin Miner? A Banker 75How Does a Bitcoin Transaction Work? 77What Is Cryptography? 78Still Want to Be a Miner? 82Do We Need Another Bitcoin? 88Chapter 7 Nautiluscoin—0 to $1 Million in 60 Days 91Creating the Coin 94Did It Work? 104Chapter 8 Building the Nautiluscoin Economy 107Dynamic Proof-of-Stake 110Other Policy Tools 113Alternative to Gold 115Money, Made Better 116Financial Market Integration 117Special Drawing Rights 119Why NAUT? 119Chapter 9 Investing and Trading in Alternative Currencies 121A New Investment Class 123Valuation 129Exchanges 133Investment Vehicles 134Asset Class Growth 136Chapter 10 Regulation 139Regulatory Agencies 140Challenges to Regulation 147Pushing on a String 147Chapter 11 Smart Money: Set It and Forget It 149Rules of the Road 151Smart Contracts and Property 152Ethereum 155Cryptoequities: A New Type of Investment 160Decentralized Autonomous Organizations 161Professor Money 162Chapter 12 Everything You Know about Business Is Wrong 163Cryptonomics 166Growth Share Matrix 169Learning Curve Effects 171Porter’s Three Generic Strategies 172Human Resource Management 173Fueling the Sharing Economy 174The Future Just Might Work 176Appendix 1 Department of the Treasury Financial Crimes Enforcement Network GuidanceFin-20 13-G00 1Issued: March 18, 2013Subject: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies 179Currency vs. Virtual Currency 180Background 180Definitions of User, Exchanger, and Administrator 181Users of Virtual Currency 181Administrators and Exchangers of Virtual Currency 182Providers and Sellers of Prepaid Access 185Dealers in Foreign Exchange 186Appendix 2 New York State Department of Financial Services Proposed New York Codes, Rules and RegulationsTitle 23. Department of Financial ServicesChapter I. Regulations of the Superintendent of Financial Services Part 200. Virtual Currencies 187Section 200.1 Introduction 188Section 200.2 Definitions 188Section 200.3 License 190Section 200.4 Application 191Section 200.5 Application Fees 193Section 200.6 Action by Superintendent 193Section 200.7 Compliance 195Section 200.8 Capital Requirements 196Section 200.9 Custody and Protection of Customer Assets 197Section 200.10 Material Change to Business 197Section 200.11 Change of Control; Mergers and Acquisitions 198Section 200.12 Books and Records 200Section 200.13 Examinations 201Section 200.14 Reports and Financial Disclosures 202Section 200.15 Anti–Money Laundering Program 203Section 200.16 Cyber Security Program 207Section 200.17 Business Continuity and Disaster Recovery 210Section 200.18 Advertising and Marketing 211Section 200.19 Consumer Protection 212Section 200.20 Complaints 215Section 200.21 Transitional Period 215Index 217

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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.

• Preface xiAcknowledgments xiiiAbout the Author xvChapter 1 Bitcoin Is a Bubble 1The Quest to Buy Bitcoin 3Bitcoin Enlightenment 6Currencies Are a Matter of Trust 8What Is Bitcoin? 10Is It a Currency? 13It’s Revolutionary 17Chapter 2 Understanding the Digital Gold Rush 19The Language of Bitcoin 22How Do I Buy Bitcoin? 26Who “Gets” It? 30The Gold Rush Is Just Starting 31Chapter 3 Bitcoin Is More than Digital Gold 33Searching for Satoshi 34Why Is Satoshi a Genius? 44Bigger than Satoshi 46Chapter 4 Byzantine Generals’ Problem 49How Does Bitcoin Solve the BGP? 5251 Percent Attack 55An Elegant Solution 57Chapter 5 A Decentralized Financial System 59Grand De-Central Station 63What’s at Stake? 69Central Banks 72Bitcoin Is the Catalyst 73Chapter 6 What Do You Call a Bitcoin Miner? A Banker 75How Does a Bitcoin Transaction Work? 77What Is Cryptography? 78Still Want to Be a Miner? 82Do We Need Another Bitcoin? 88Chapter 7 Nautiluscoin—0 to $1 Million in 60 Days 91Creating the Coin 94Did It Work? 104Chapter 8 Building the Nautiluscoin Economy 107Dynamic Proof-of-Stake 110Other Policy Tools 113Alternative to Gold 115Money, Made Better 116Financial Market Integration 117Special Drawing Rights 119Why NAUT? 119Chapter 9 Investing and Trading in Alternative Currencies 121A New Investment Class 123Valuation 129Exchanges 133Investment Vehicles 134Asset Class Growth 136Chapter 10 Regulation 139Regulatory Agencies 140Challenges to Regulation 147Pushing on a String 147Chapter 11 Smart Money: Set It and Forget It 149Rules of the Road 151Smart Contracts and Property 152Ethereum 155Cryptoequities: A New Type of Investment 160Decentralized Autonomous Organizations 161Professor Money 162Chapter 12 Everything You Know about Business Is Wrong 163Cryptonomics 166Growth Share Matrix 169Learning Curve Effects 171Porter’s Three Generic Strategies 172Human Resource Management 173Fueling the Sharing Economy 174The Future Just Might Work 176Appendix 1 Department of the Treasury Financial Crimes Enforcement Network GuidanceFin-20 13-G00 1Issued: March 18, 2013Subject: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies 179Currency vs. Virtual Currency 180Background 180Definitions of User, Exchanger, and Administrator 181Users of Virtual Currency 181Administrators and Exchangers of Virtual Currency 182Providers and Sellers of Prepaid Access 185Dealers in Foreign Exchange 186Appendix 2 New York State Department of Financial Services Proposed New York Codes, Rules and RegulationsTitle 23. Department of Financial ServicesChapter I. Regulations of the Superintendent of Financial Services Part 200. Virtual Currencies 187Section 200.1 Introduction 188Section 200.2 Definitions 188Section 200.3 License 190Section 200.4 Application 191Section 200.5 Application Fees 193Section 200.6 Action by Superintendent 193Section 200.7 Compliance 195Section 200.8 Capital Requirements 196Section 200.9 Custody and Protection of Customer Assets 197Section 200.10 Material Change to Business 197Section 200.11 Change of Control; Mergers and Acquisitions 198Section 200.12 Books and Records 200Section 200.13 Examinations 201Section 200.14 Reports and Financial Disclosures 202Section 200.15 Anti–Money Laundering Program 203Section 200.16 Cyber Security Program 207Section 200.17 Business Continuity and Disaster Recovery 210Section 200.18 Advertising and Marketing 211Section 200.19 Consumer Protection 212Section 200.20 Complaints 215Section 200.21 Transitional Period 215Index 217

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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.

• Preface xiAcknowledgments xiiiAbout the Author xvChapter 1 Bitcoin Is a Bubble 1The Quest to Buy Bitcoin 3Bitcoin Enlightenment 6Currencies Are a Matter of Trust 8What Is Bitcoin? 10Is It a Currency? 13It’s Revolutionary 17Chapter 2 Understanding the Digital Gold Rush 19The Language of Bitcoin 22How Do I Buy Bitcoin? 26Who “Gets” It? 30The Gold Rush Is Just Starting 31Chapter 3 Bitcoin Is More than Digital Gold 33Searching for Satoshi 34Why Is Satoshi a Genius? 44Bigger than Satoshi 46Chapter 4 Byzantine Generals’ Problem 49How Does Bitcoin Solve the BGP? 5251 Percent Attack 55An Elegant Solution 57Chapter 5 A Decentralized Financial System 59Grand De-Central Station 63What’s at Stake? 69Central Banks 72Bitcoin Is the Catalyst 73Chapter 6 What Do You Call a Bitcoin Miner? A Banker 75How Does a Bitcoin Transaction Work? 77What Is Cryptography? 78Still Want to Be a Miner? 82Do We Need Another Bitcoin? 88Chapter 7 Nautiluscoin—0 to $1 Million in 60 Days 91Creating the Coin 94Did It Work? 104Chapter 8 Building the Nautiluscoin Economy 107Dynamic Proof-of-Stake 110Other Policy Tools 113Alternative to Gold 115Money, Made Better 116Financial Market Integration 117Special Drawing Rights 119Why NAUT? 119Chapter 9 Investing and Trading in Alternative Currencies 121A New Investment Class 123Valuation 129Exchanges 133Investment Vehicles 134Asset Class Growth 136Chapter 10 Regulation 139Regulatory Agencies 140Challenges to Regulation 147Pushing on a String 147Chapter 11 Smart Money: Set It and Forget It 149Rules of the Road 151Smart Contracts and Property 152Ethereum 155Cryptoequities: A New Type of Investment 160Decentralized Autonomous Organizations 161Professor Money 162Chapter 12 Everything You Know about Business Is Wrong 163Cryptonomics 166Growth Share Matrix 169Learning Curve Effects 171Porter’s Three Generic Strategies 172Human Resource Management 173Fueling the Sharing Economy 174The Future Just Might Work 176Appendix 1 Department of the Treasury Financial Crimes Enforcement Network GuidanceFin-20 13-G00 1Issued: March 18, 2013Subject: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies 179Currency vs. Virtual Currency 180Background 180Definitions of User, Exchanger, and Administrator 181Users of Virtual Currency 181Administrators and Exchangers of Virtual Currency 182Providers and Sellers of Prepaid Access 185Dealers in Foreign Exchange 186Appendix 2 New York State Department of Financial Services Proposed New York Codes, Rules and RegulationsTitle 23. Department of Financial ServicesChapter I. Regulations of the Superintendent of Financial Services Part 200. Virtual Currencies 187Section 200.1 Introduction 188Section 200.2 Definitions 188Section 200.3 License 190Section 200.4 Application 191Section 200.5 Application Fees 193Section 200.6 Action by Superintendent 193Section 200.7 Compliance 195Section 200.8 Capital Requirements 196Section 200.9 Custody and Protection of Customer Assets 197Section 200.10 Material Change to Business 197Section 200.11 Change of Control; Mergers and Acquisitions 198Section 200.12 Books and Records 200Section 200.13 Examinations 201Section 200.14 Reports and Financial Disclosures 202Section 200.15 Anti–Money Laundering Program 203Section 200.16 Cyber Security Program 207Section 200.17 Business Continuity and Disaster Recovery 210Section 200.18 Advertising and Marketing 211Section 200.19 Consumer Protection 212Section 200.20 Complaints 215Section 200.21 Transitional Period 215Index 217

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