CRYPTOCURRIENCIES

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WHAT IS CRYPTOCURRENCY??

It is the medium of exchange for goods and services on internet.

Unlike the our hard cash it is impossible to touch and feel this.

THEN WHAT’S DIGITAL CURRENCY??DIGITAL CURRENCY

Ven currency

Centralised systems

Crypto-currency

Decentralised systems• E-gold• digi-cash

Examples

Examples• Bitcoin• Peercoin

Birth of Cryptocurrency

Invented in 2009 by Japanese software developer Satoshi Nakamoto (on hypothesis)

on the name ‘BITCOIN.’

What is it? What happened?

Bitcoin

What is Bitcoin?

What is Bitcoin?

First and populous of players.

Purely Electronic money, follows

peer-to-peer electronic cash transfers

mechanism between two parties . Relies on network of computers that

use Bitcoin protocol which is confidential till now.

Operations with Bitcoin

Process of earning Bitcoins is called mining.

Users/Clients of Bitcoins are termed as miners.

Similar to CASA accounts ,Bitcoin uses ‘virtual wallet’ system to make transactions.

Miners can buy/sell Bitcoins through online exchanges.

Value of Bitcoin??

The value of Cryptocurriencies are always based on speculation.

So is the price of Bitcoin is volatile.

Depends on the users confidence

The value of Bitcoin against rupee.1 =Rs39,005

/- (as on

12/3/2014)

How secure ??

Uses a sophisticated ‘Bitcoin protocol’

Transactions made by sending Bitcoins from one wallet to a unique key associated with another wallet in a ‘cryptographic’ process verified by computers.

Its best security systems which are expected to be the better than Google.

Pros Widely accepted online by more than

1000 merchants Eco friendly No taxes for out bound transactions

too. Its decentralized system. Secure system

Cons

Very volatile !

There is always a chance to get hacked.

Not subjected to any of the jurisdiction.

Cons(cont.)

Its decentralized system attracts smugglers and money laundering.

It may turn as another international ponzi scheme, as its operators are not properly identified till date.

Adds woes to developing countries by increasing CAD.

What is its future??

Recent updates from Mt Gox about “unusal activity” has decreased the miners’ confidence.

If it goes well,Bitcoin will be in a eminent position in market structure after Dollar and Euro.

What is its future??(cont)

Up coming countries like Cyprus are using Bitcoin to control their inflation.

Bitcoin seems to be emerging victorious especially in Asia.

On an ending note..

Major growth in ‘Cryptocurrencies’ is not good for standard fiscal bodies as they may lead to another financial crisis.

The policy makers should come up with new flexible policies to minimize the ‘Cryptocurrencies’ usage.

When’s India’s turn??

Yes! Recently a digital currency has been announced by the name ‘laxmicoin’

Appreciate your time.

Thank you…

References

http://en.wikipedia.org/wiki/crypto_currency

https://bitcoin.org/en/how -it-works

Queries ?