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Bitcoin

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Bitcoin- Profile and Analysis Presentation

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Bitcoin

  1. 1. Group Members Fayoke Banjo (Team Lead) Andrine Jackson-Scott Claudeen Grenyion Ornela Keruti Chris McFarlane
  2. 2. AGENDA INTRODUCTION CHARACTRISTICS HOW IS BITCOIN AN INDUSTRY TREND? PESTLE ANALYSIS BITCOIN ECOSYSTEM AND DESIGN BITCOIN: ITS PLACE IN E-COMMERCE BITCOIN MERCHANTS BITCOIN CHALLENGES ADDRESSED AND ADDRESSING BITCOIN OPPORTUNITIES COURSE CONCEPTS INCOPERATED CONCLUSION
  3. 3. Introduction • Released in 2009 by a programmer using the Pseudonym Satoshi Nakamoto • It is a protocol that is electronically created and stored • Uses cryptography for security, which is extremely difficult to counterfeit • Facilitates electronic payments based on mathematical proof and validation • Bitcoins are mined using computer power in a distributed network https://www.youtube.com/watch?v=Um63OQz3bjo
  4. 4. Bitcoin Characteristics Decentralized Open source Peer to peer Easy to use Unregulated (that is changing slowly) Anonymous yet Transparent Fast but irreversible transfers
  5. 5. Bitcoin: An Industry Trend- How? • The first Crypto-currencies to gain ground in the real economy. Other Cryptocurrencies are built from the same open-source code • Disruptive technology in the financial industry • Offers a 21st century alternative to brick and mortar banking • E-commerce is becoming common place which opens further opportunities for the continued use of the currency • Bitcoin is becoming a mainstream trend as the most popular virtual currency with the highest value in circulation compared to other cryptocurrencies.
  6. 6. Bitcoin- An industry Trend- How? Cont. • Millennials and high income consumers/believers are earlier adopters “13% of millennials and 19% of high income respondents use digital currencies to make payments on a weekly basis” (Accenture, 2014) • Usage is estimated to increase in these two groups to 26% and 32% respectively by 2020 • Decline in payments using traditional payment instruments • This momentum is expected to continue in the future
  7. 7. POLITICAL ANALYSIS • Not controlled by any government body • China, Russia?- Banks barred from accepting bitcoin • United States, Canada & EU considered Pro-bitcoin • Allowed between private entities.
  8. 8. ECONOMICAL ANALYSIS • Market capitalization exceeds $6 billion- 0.008% of global GDP of $78 trillion • 21 million bitcoins in existence today and 15,359,800 in circulation • Too small to affect Federal government ability to conduct monetary policy • Over 88,000 merchants currently use Bitcoin
  9. 9. SOCIAL-CULTURAL • Driving force- Anonymity, Reach and Savings • Low-level awareness & Usage • More merchant adopting the payment technology can increase adoption among consumers
  10. 10. TECHNOLOGICAL • Bitcoin public ledger (Blockchain) is being leveraged
  11. 11. Environmental Factors • As demand grows, More computational power required • Miners to find alternative source of electricity- cheap coal in old plants • Carbon footprint- associated with 1.5 tons of CO2 emission/ Bitcoin
  12. 12. LEGAL FACTORS • Decentralized nature of the coin hinders any form of regulatory effort THIS IS CHANGING: • Countries such as Canada, U.S.A, E.U are putting regulations in place • E.g. Obama Administration partnering with private companies (Blockchain alliance)
  13. 13. Bitcoin Ecosystem
  14. 14. Bitcoin Design • Block chain technology • Dedicated computing power – hash rate • Shared public ledger • 256 bit encryption protocol • Files on a computer – wallet • Enforced with cryptography
  15. 15. Place within ecommerce framework • Revolutionize ecommerce payments by offering a peer-to peer digital cash system • Disruptive to traditional payment systems • Most beneficial to merchants • Cross-border payments • Bureaucratic process involved in initiating a payment gateway for e-commerce sites and incorporating the banks protocols
  16. 16. Bitcoin Merchants • Overstock • Virgin Galactic • Dish Network • Dell • Microsoft
  17. 17. Bitcoin challenges
  18. 18. Bitcoin challenges (cont's) • Confirmation Times • Blockchain Scalability
  19. 19. Bitcoin challenges (cont.) • Double Spending • Security
  20. 20. Bitcoin Opportunities • Transfer of property • Ex. Colored Coin designing small portions of bitcoin to denote physical property
  21. 21. Bitcoin Opportunity Cont. • Identity Management • Social security number, tax identification number and even driver’s license • Access to wider and untapped Market
  22. 22. Course Concept incorporated MOBILE WEBSITE- Xapo, BitGo, Coinbase MOBILE WEB APP: Windows, Mac and Linx (BitGo, Bitcoin Core) NATIVE APP: IOS, Android, Windows Phone, Blackberry (Airbitz, Bitcoin Wallet) HARDWARE: Ledger Nano, KeepKey, Trezor • Hardware wallet that makes bitcoin security simple • Can keep the user private key safe • Validate Transactions
  23. 23. Conclusion • Crypto-currency landscape is still evolving and despite its issues and challenges • The bitcoin technology is in the stage as the internet in the 1990s • Bitcoin might not be the major Crypto-currency of the future due to its challenges and drawbacks • The bitcoin open technology platform is definitely leading the way towards a more seamless digital global economy

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