<table><tr><th>From:</th><th>Vincenzo lozzo</th></tr><tr><td>Sent:</td><td>Wednesday, September 24, 2014 2:52 PM</td></tr><tr><td>To:</td><td>jeffrey E.</td></tr><tr><td>Subject:</td><td>Fwd: basic thought exercise (bitcoin commerce supply/demand)</td></tr></table>

Begin forwarded message:

> From: Vincenzo lozzo

> Subject: basic thought exercise (bitcoin commerce supply/demand)

> Date: 24 settembre 2014 09:33:29 GMT-4

> To: Joichi Ito

>

> Ok so this morning I'm doing a basic thought exercise which is: "Why =o people would want to use bitcoins? and Why would businesses use =itcoins"? So this like very basic stuff for actual commerce

>

> Let's call people "demand" and companies "supply".

>

> Demand:

> 1) Tax evasion

> 2) Accumulated wealth through mining (only applies to early adopters) => 3) No banks? --> I think this only makes sense for non-western =ountries, people with certain ideologies, criminals and poor people

> 4) Somewhat increased anonymity? --> People clearly don't give a fuck =bout privacy, so this would only be for porn, drugs and maybe betting

5) Reduced costs for international trades --> I don't think most =eople understand that they are charged an FX fee on top of a rigged =xchange rate whenever they are paying in a foreign currency, so really ='m not sure that's a concern. And if it is it probably means you are =ell informed and off enough to afford an amex platinum or similar =lternatives

> Supply:

> 1) Reduced costs --> for now, this is going to change both because of =he dynamics of bitcoin but also for fraud prevention etc etc

> 2) Tax evasion?

> 3) Bigger userbase --> getting easier access to markets like china or =ussia? I don't actually buy this. For instance the problem in shipping =tuff to Russia is that you need to bribe the custom agent that gets =our package, so it ends up costing *a lot' to you and it has nothing to =o with CC

> 4) Analytics on consumers --> use transactions on the blockchain to =nderstand what your customers buy >

> What am I missing here?

>

> I think what I'm trying to get at is that of the above half of them =on't apply to the US/western countries and the other half can be =rushed in a second by tax authorities/LEO

>

>