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From: Jerry Felix <jerfelix@hotmail.com>
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Subject: Re: [Bitcoin-development] Paper Currency
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Thanks for all the feedback=2C and for everyone who read through the docs. =
=20

My BIP numbering was a blunder=2C and I have revised the numbering to be PC=
P-0 (Paper Currency Proposal Number 0) through PCP-4.   I think I was brain=
-dead on that=2C sorry=2C and I am now on PCP.



Please allow me to walk you through my thought process on Paper Currency=2C=
 if you aren't sold that there's merit.

At present time=2C paper currency undeniably serves a major purpose in soci=
ety and has a huge value.  Whether all-digital transfers can totally replac=
e paper is still unknown.

And we citizens currently pay a lot to create paper money that is hard to c=
ounterfeit.  That too has tons of value=2C and it can be measured by lookin=
g at how much is spent to design=2C print=2C and protect fiat currencies fr=
om counterfeiting.  And you can add to that cost the societal costs of succ=
essful counterfeiting.  US Numbers exceed $800M annually=2C and are a fract=
ion of the worldwide numbers.

And travelers routinely pay currency exchange fees=2C to acquire paper curr=
ency that is accepted in particular locales.  So a single internationally a=
ccepted=2C border-less paper currency would have high value=2C as it could =
potentially eliminate exchange fees for travelers.

Add all the above costs together=2C and you can see that this is a multi-bi=
llion dollar market that Bitcoin could disrupt.   We could actually elimina=
te all of those costs=2C while at the same time put Bitcoins into the hands=
 of people in a form that is more familiar.

That's why this feels like a huge need that can be satisfied by creating a =
single standard for hard-to-counterfeit=2C cheap to print=2C paper currency=
.    I think the key is a "single standard" that the public recognizes.



I think that there are things that you can do with paper now that can't be =
done with all-digital transfers.  Maybe my perspective is too US-centric du=
e to tipping customs=2C but it seems much easier to rapidly leave money for=
 someone without their involvement via paper than digital transfers ever wi=
ll be.  =20

A recent video showed a stripper/dancer stop dancing and pose to have her Q=
R Tattoo scanned for payment.  (Not that this is all about strippers and PC=
P=2C but...) paper would be a much more practical medium than digital trans=
fer in a lot of scenarios. =20
http://blogs-images.forbes.com/kashmirhill/files/2014/05/Bitcoin-stripper-Q=
R-code.jpg=20
If you think about it=2C whether you slipped her a Bitcoin Paper note or di=
gitally transferred payment to her QR code=2C in neither case is she able t=
o verify receipt of payment until she steps off stage.  But remember=2C we'=
re typically talking about a buck or ten or twenty=2C not 3 bitcoins as sho=
wn in the video!



I saw a Reddit or bitcointalk comment=2C I believe credited to Mike Caldwel=
l=2C saying that the author envisioned transactions where the buyer simply =
handed over private keys (paper wallets)=2C and the merchant had all the el=
ectronics.  Reducing the electronics necessary for transfers seems to be de=
sirable.  Should I have to carry a $300 cell phone to be able to carry and =
spend $20?  This would be moot if 100% of people had their electronic devic=
es with them 100% of the time they need to spend money=2C and the device is=
 100% reliable.  I know for me that's not the case.

So=2C if the currency medium of paper has value=2C and Bitcoin can make pap=
er currency more counterfeit-proof=2C and Bitcoin can eliminate costs=2C an=
d it's a huge market=2C and the public is familiar with the paper paradigm=
=2C all that's left is for the community to come up with a standard.  That'=
s why I took a crack at it=2C but I certainly welcome improvements!

Questions:=20
1)  Is paper a valuable medium for currency?  I contend yes. =20
2)  What's the proper tradeoff between convenience and security for paper B=
itcoin Notes?  I opted for splitting the private key over two QR codes on o=
pposite sides of the page=2C as opposed to BIP-38=2C and I explained my rat=
ionale in the documents.

The rest of the technical details (the splitting algorithm=2C for instance)=
 need to be resolved.  But I took a crack at it.
And the marketing details (note size=2C shape=2C color=2C layout=2C text=2C=
 do we call them "Bits"=2C etc.) all need to be resolved.  again=2C I gave =
it my best effort=2C but I'm quite certain the community can do better than=
 me!


First step=2C though=2C is to determine whether there's consensus to define=
 a standard for paper bitcoin currency.



Thanks for hearing me out!=20
Docs are here:  =20
https://github.com/jerfelix/provisional_bips/blob/master/README.mediawiki=20



 		 	   		  =

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<body class=3D'hmmessage'><div dir=3D'ltr'>Thanks for all the feedback=2C a=
nd for everyone who read through the docs.&nbsp=3B <br><br>My BIP numbering=
 was a blunder=2C and I have revised the numbering to be PCP-0 (Paper Curre=
ncy Proposal Number 0) through PCP-4.&nbsp=3B&nbsp=3B I think I was brain-d=
ead on that=2C sorry=2C and I am now on PCP.<br><br><br><br>Please allow me=
 to walk you through my thought process on Paper Currency=2C if you aren't =
sold that there's merit.<br><br>At present time=2C paper currency undeniabl=
y serves a major purpose in society and has a huge value.&nbsp=3B Whether a=
ll-digital transfers can totally replace paper is still unknown.<br><br>And=
 we citizens currently pay a lot to create paper money that is hard to coun=
terfeit.&nbsp=3B That too has tons of value=2C and it can be measured by lo=
oking at how much is spent to design=2C print=2C and protect fiat currencie=
s from counterfeiting.&nbsp=3B And you can add to that cost the societal co=
sts of successful counterfeiting.&nbsp=3B US Numbers exceed $800M annually=
=2C and are a fraction of the worldwide numbers.<br><br>And travelers routi=
nely pay currency exchange fees=2C to acquire paper currency that is accept=
ed in particular locales.&nbsp=3B So a single internationally accepted=2C b=
order-less paper currency would have high value=2C as it could potentially =
eliminate exchange fees for travelers.<br><br>Add all the above costs toget=
her=2C and you can see that this is a multi-billion dollar market that Bitc=
oin could disrupt.&nbsp=3B&nbsp=3B We could actually eliminate all of those=
 costs=2C while at the same time put Bitcoins into the hands of people in a=
 form that is more familiar.<br><br>That's why this feels like a huge need =
that can be satisfied by creating a single standard for hard-to-counterfeit=
=2C cheap to print=2C paper currency.&nbsp=3B&nbsp=3B&nbsp=3B I think the k=
ey is a "single standard" that the public recognizes.<br><br><br><br>I thin=
k that there are things that you can do with paper now that can't be done w=
ith all-digital transfers.&nbsp=3B Maybe my perspective is too US-centric d=
ue to tipping customs=2C but it seems much easier to rapidly leave money fo=
r someone without their involvement via paper than digital transfers ever w=
ill be.&nbsp=3B&nbsp=3B <br><br>A recent video showed a stripper/dancer sto=
p dancing and pose to have her QR Tattoo scanned for payment.&nbsp=3B (Not =
that this is all about strippers and PCP=2C but...) paper would be a much m=
ore practical medium than digital transfer in a lot of scenarios.&nbsp=3B <=
br><a href=3D"http://blogs-images.forbes.com/kashmirhill/files/2014/05/Bitc=
oin-stripper-QR-code.jpg" target=3D"_blank">http://blogs-images.forbes.com/=
kashmirhill/files/2014/05/Bitcoin-stripper-QR-code.jpg</a> <br>If you think=
 about it=2C whether you slipped her a Bitcoin Paper note or digitally tran=
sferred payment to her QR code=2C in neither case is she able to verify rec=
eipt of payment until she steps off stage.&nbsp=3B But remember=2C we're ty=
pically talking about a buck or ten or twenty=2C not 3 bitcoins as shown in=
 the video!<br><br><br><br>I saw a Reddit or bitcointalk comment=2C I belie=
ve credited to Mike Caldwell=2C saying that the author envisioned transacti=
ons where the buyer simply handed over private keys (paper wallets)=2C and =
the merchant had all the electronics.&nbsp=3B Reducing the electronics nece=
ssary for transfers seems to be desirable.&nbsp=3B Should I have to carry a=
 $300 cell phone to be able to carry and spend $20?&nbsp=3B This would be m=
oot if 100% of people had their electronic devices with them 100% of the ti=
me they need to spend money=2C and the device is 100% reliable.&nbsp=3B I k=
now for me that's not the case.<br><br>So=2C if the currency medium of pape=
r has value=2C and Bitcoin can make paper currency more counterfeit-proof=
=2C and Bitcoin can eliminate costs=2C and it's a huge market=2C and the pu=
blic is familiar with the paper paradigm=2C all that's left is for the comm=
unity to come up with a standard.&nbsp=3B That's why I took a crack at it=
=2C but I certainly welcome improvements!<br><br>Questions: <br>1)&nbsp=3B =
Is paper a valuable medium for currency?&nbsp=3B I contend yes.&nbsp=3B <br=
>2)&nbsp=3B What's the proper tradeoff between convenience and security for=
 paper Bitcoin Notes?&nbsp=3B I opted for splitting the private key over tw=
o QR codes on opposite sides of the page=2C as opposed to BIP-38=2C and I e=
xplained my rationale in the documents.<br><br>The rest of the technical de=
tails (the splitting algorithm=2C for instance) need to be resolved.&nbsp=
=3B But I took a crack at it.<br>And the marketing details (note size=2C sh=
ape=2C color=2C layout=2C text=2C do we call them "Bits"=2C etc.) all need =
to be resolved.&nbsp=3B again=2C I gave it my best effort=2C but I'm quite =
certain the community can do better than me!<br><br><br>First step=2C thoug=
h=2C is to determine whether there's consensus to define a standard for pap=
er bitcoin currency.<br><br><br><br>Thanks for hearing me out! <br>Docs are=
 here:&nbsp=3B&nbsp=3B <br><a href=3D"https://github.com/jerfelix/provision=
al_bips/blob/master/README.mediawiki" target=3D"_blank">https://github.com/=
jerfelix/provisional_bips/blob/master/README.mediawiki</a> <br><br><pre><br=
></pre><br> 		 	   		  </div></body>
</html>=

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