Bitcoin!

SHANTANU SINGH

1200112202

DEPARTMENT OF CSE, INTEGRAL UNIVERSITY

What is Bitcoin?

►Decentralized Digital Currency

►Like virtual cash or gold

► Transferred person-to-person

►No bank or government prerequisites

or control

►BTC ,

History of Bitcoin

First mentioned in a 2008 paper published under the name Satoshi

Nakamoto.

The price of bitcoins has fluctuated wildly since its inception.

In 2011, the value of one bitcoin rapidly rose from about US$0.30 to

US$32 before returning to US$2

During the 2012-2013 Cypriot Financial Crisis, the bitcoin price began to

rise, reaching a peak of US$266 on 10 April 2013

In the end of 2013, the cost of one bitcoin rose to the all-round peak of

US$1135, but fell to the price of US$693 three days later.

Satoshi Nakamoto’s Research

Some Facts

Limited to 21 million bitcoins

X amount released every ~10 minutes

Until 2140

Divisible to .00000001 (USD = .01)

Very difficult & expensive to hack

Controlled by the consensus of market participants

Why Does Bitcoin Have Values?

Limited / Scarce (like gold)

Decentralized (no government)

Peer-to-Peer (like torrents)

Can be anonymous

Transparent (open source)

Trusted (vetted for over 5 years)

Easy to buy and sell

Extremely low transaction fee

Irreversible (no chargebacks)

How Does Bitcoin Work?

Two parts of a Bitcoin “account”

1. Public Key – account number / address

(27-34 alphanumeric characters)

2. Private Key – password to access bitcoins in the account

Public Key Example –

1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx

How Do You Get Bitcoins?

Three ways to acquire Bitcoins:

1. Buy (from a person or exchange)

2. Barter (sell product or service)

3. Mine (run software to buy bitcoins)

How Can You Profit With Bitcoin?

Mine, then sell (becoming increasingly more difficult)

Invest or trade

Buy & Hold = very risky

Short-term trading

Offer discounts in products / services for payment in BTC

Bitcoin Speculation

Bitcoin has increased in value over 10,000% in a short period of time

Many price crashes of 50% or more

Price has recovered after each crash

The “big question”

“Will Bitcoin become widely accepted as a form of payment and a store of value?”

June 2011 Bubble

April 2013 Bubble

November 2013 Bubble

Bitcoin Speculation Tip

Don’t chase emotional buying

Do the opposite of the herd

Consider the risk and your goals

Is day trading really riskier than the “buy and hope”

mentality?

Bitcoin Wallet

Stores your Bitcoin

Four type of Wallets:

1. Software on local hard drive

2. Mobile

3. Hosted Online

4. Paper

bitcoin.org/en/choose-your-wallet

Copay: HD-Multisignature Wallet

Hardware Wallets

► Ledger Nano is a hardware wallet built upon a

ST23YT66 banking smartcard platform.

► Trezor is able to sign transactions while connected

to an online device.

Advantages / Disadvantages

Advantages

Payment Freedom

Very low fees

Fewer risks for merchants

Security and control

Transparent and Neutral

Disadvantages

Degree of Acceptance

Volatility

Ongoing Development

Thank You for your patient listening!!

1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx

Donate

Bitcoins

Here!